Moody’s eyes Cardtronics for cut

Moody’s Investors Service said it placed Cardtronics, Inc.’s ratings under review for downgrade, including its Ba3 corporate family rating, the Ba2 rating on the first-lien term loan issued by Cardtronics’ subsidiary Cardtronics USA, Inc. and the B2 rating on Cardtronics’ $300 million of 5½% senior unsecured notes.

The review was prompted by the announcement of Cardtronics’ planned acquisition by NCR Corp., the agency said.

“While NCR has indicated that, after completion of this transaction in mid-2021, it will suspend share repurchases and apply cash flow to debt reduction, LTM pro forma leverage will initially increase meaningfully vs Cardtronics’ LTM level of just over 3x (pro forma for repayment of the 1% convertible senior notes in December 2020) on a stand-alone basis. To the extent that all of the rated debt of Cardtronics and its subsidiaries is repaid as part of the transaction, Moody’s would expect to withdraw Cardtronics’ ratings following the closing,” Moody’s said in a press release.

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