Moody's rates Iron Mountain notes Ba1

Moody's Investors Service said it assigned a Ba1 (LGD2) rating to the proposed £350 million senior notes due 2022 being issued by Iron Mountain Inc. subsidiary Iron Mountain Europe plc. The company’s Ba3 corporate family rating, the existing ratings for its debt instruments and its stable outlook are not affected.

Proceeds will be used to reduce borrowings under the company’s revolving credit facility and for general corporate purposes.

"Iron Mountain's proposed notes issuance will replenish the company's liquidity ahead of an increase in shareholder distributions in connection with the company's conversion to a real estate investment trust and an increase in the payout ratio of ordinary dividends,” Moody's analyst Raj Joshi said in an agency news release.

The Ba3 corporate family rating continues to reflect Moody's expectation that Iron Mountain's ratio of total debt to EBITDA will peak around mid 5 times in the second half of 2014 before it gradually declining to 5 times in 2016.

© 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.