S&P: Transaction Network unaffected

Standard & Poor's said the proposed offering by Transaction Network Services Inc. (BB-/stable/--) of 1.2 million shares of common stock would not affect its current ratings or outlook on the company.

Transaction Network is expected to use all of the about $23 million of net proceeds from the proposed offering to reduce existing debt.

Pro forma operating lease adjusted debt to EBITDA would improve to 1.3x from 1.7x following the debt repayment.

Although this transaction will improve Transaction Network's already strong financial profile, S&P said the company's ratings remain constrained by its business profile.

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