Moody’s: Iron Mountain Australia loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to the A$250 million term loan facility at Iron Mountain Australia Group Pty. Ltd., an indirect subsidiary of Iron Mountain Inc.

As part of the rating action, the agency affirmed Iron Mountain's SGL-3 speculative grade liquidity rating.

All other ratings, including Iron Mountain's Ba3 corporate family rating and the stable outlook, are not affected.

The company intends to use net proceeds from the new term loan to refinance a portion of the outstanding revolver borrowings.

Moody’s said the corporate family rating is weakly positioned in the Ba3 rating category because of the company's elevated leverage of about 5.8 times (Moody's adjusted, at 2Q 2016), execution risk in integrating the Recall acquisition and projected free cash flow deficits over the next two to three years. The Ba3 corporate family rating incorporates the agency’s expectation that management is committed to reducing leverage toward its target of below 5 times.

Moody's expects the new A$250 m million term loan to benefit from a security interest in substantially all Australian assets of the borrower and its material subsidiaries as well as unsecured guarantees from Iron Mountain Inc. and certain of its U.S. subsidiaries.

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