Moody’s lifts Datapipe facilities to B1

Moody's Investors Service said it affirmed Datapipe, Inc.'s B3 corporate family rating and B3-PD probability of default rating, along with the Caa2 rating on its second-lien term loan, following the company's announcement that it will raise $60 million in preferred equity and receive about $25 million of proceeds from a sale lease-back transaction.

Proceeds will be used to repay the outstanding revolver balance, to pay related fees and expenses and the remaining amount, about $50 million, will be added as cash to the balance sheet.

Consequently, Moody's upgraded the senior secured first-lien credit facilities to B1 from B2 reflecting the improvement in expected loss on the first-lien debt following the injection of equity capital.

The outlook was changed to stable to reflect a more balanced financial policy and an improved liquidity position following the equity infusion.

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