Moody's rates Pacnet, notes B1

Moody's Investors Service said it assigned a B1 corporate family rating to Pacnet Ltd. and a B1 senior secured bond rating to its proposed notes.

The outlook is stable.

The proceeds of the bonds will be used toward refinancing Pacnet's existing debt, capital expenditure and funding a dividend to shareholders.

Pacnet's B1 ratings reflect its extensive intra-Asian and Trans-Pacific submarine cable infrastructure, which leaves the company well positioned to benefit from regional expanding bandwidth demand and the conversion of telephony to IP-based capacity, Moody's said.

Moody's said Pacnet's projected adjusted debt-to-EBITDA ratio of 3.5 to 4.0 times falling to 2.5 to 3.0 times over the next two to three years also supports its B1 rating.

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