S&P: Palm unchanged

Standard & Poor's said its B/stable corporate credit rating on Palm Inc. and its ratings on Palm's revised credit facility, would not change from the ratings assigned on July 19, when the transaction was first announced.

In July, the agency said the ratings were based on preliminary offering statements and would be subject to review upon receipt of final documentation.

The revised credit facility consists of a $30 million, five-year revolving credit agreement and a $400 million, six-and-one-half-year term loan, the agency noted, adding that the revolving credit component of the new facility replaces a $40 million revolver, while the term loan remains $400 million.

Although interest expense in the new facility is somewhat higher than originally contemplated, the financial profile and senior debt recovery prospects remain within the range contemplated in the original rating, S&P said.

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