Moody's may lift Evertec, rates loan B1

Moody's Investors Service said it assigned a B1 rating (LGD 3, 49%) to Evertec Group, LLC's proposed senior secured credit facilities.

Moody's also said it placed the B2 corporate family and B2-PD probability of default ratings under review for upgrade based on Evertec's plan for a primary issuance of shares through an initial public offering.

The outlook also was change to under review from stable, the agency said.

The proceeds of the credit facilities and the IPO will be used to refinance Evertec's outstanding debt, Moody's said.

Upon closing with at least $125 million of proceeds from primary shares, Moody's said it anticipates raising the corporate family rating to B1 based on the expectation of improving cash flow and because a body of public shareholders reduces the risk of additional debt-financed shareholder distributions.

The agency also said it anticipates financial leverage will be lower than similarly rated peers because Evertec's results depend on Puerto Rico, which has experienced an extended period of poor economic activity and lacks significant growth drivers.

© 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.