Moody’s rates iPayment facilities B1, notes Caa2

Moody's Investors Service said it assigned a B1 rating to iPayment, Inc.'s proposed $325 million of first-lien credit facilities and a Caa2 rating to the proposed $200 of second-lien notes being offered in conjunction with the company's plans to refinance existing first-lien term loans and consummate a debt restructuring.

The Caa2 corporate family rating, existing debt ratings at iPayment and iPayment Holdings, Inc., and negative outlooks are not affected.

The agency will append the "/LD" indicator to iPayment's existing probability of default rating of Caa3-PD upon the close of the pending debt exchange offer indicating a limited default in the capital structure.

Moody’s said the ratings for the new debt instruments reflects its expectation that iPayment's corporate family rating is likely to be upgraded to B3 if the refinancing and the debt and equity exchange offers are completed as proposed and the company maintains adequate liquidity, including at least about $15 million of cash on hand, upon the close of the recapitalization.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.