Moody’s gives Iron Mountain notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Iron Mountain Inc.’s new $750 million of senior notes maturing in 2027.

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

The company intends to use the proceeds from the new notes offering and revolver borrowings to retire up to $1 billion of its 6% senior notes due 2020 through a tender offer.

Moody’s said the corporate family rating is weakly positioned in the Ba3 category and reflects Iron Mountain's elevated leverage (5.5 times, Moody's adjusted total debt to EBITDA at 2Q 2017) and persistent free cash flow deficits that are expected to continue through at least 2019.

The agency expects EBITDA growth from a combination of organic revenue growth of about 2% and synergies from the Recall acquisition to progressively drive leverage to below 5 times over the next two to three years.

© 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.