Moody's affirms InfoUSA

Moody's Investors Service said it affirmed all of InfoUSA Inc.'s credit ratings and changed the outlook to negative following the announcement that an entity controlled by the company's founder, chairman and chief executive officer, Vin Gupta, has made an offer to acquire all of the publicly held common shares of InfoUSA in a debt financed transaction.

Gupta currently owns approximately 38% of the common shares of InfoUSA.

Under the terms of the proposed offer, the holders of InfoUSA common stock, other than Mr. Gupta, would receive $11.75 in cash per share, the agency said.

Affirmed ratings include the $50 million senior secured revolving credit facility due 2007 at Ba3, $105 million senior secured first lien term loan A due 2009 at Ba3 and the $70 million senior secured term loan B due 2010, also Ba3.

The negative outlook reflects the substantial increase in debt levels and weakening of credit metrics that is expected to occur if the offer is accepted, Moody's added.

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