Moody's assigns NCR Atleos, loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and B2-PD probability of default rating to NCR Atleos LLC. The agency also assigned a B2 rating to the planned senior secured bank credit facility, which includes a $500 revolving credit facility due 2028, a $835 million term loan A due 2028, and a $1.05 billion term loan B due 2030. The outlook is positive.

As part of the transaction, the company will also launch other secured debt of about $1.05 billion. The proceeds from the debt issuance, totaling $2.935 billion of funded debt, will be used, net of transaction costs, to make a distribution to NCR Corp., from which NCR Atleos is separating in the fourth quarter of this year.

NCR will use the proceeds, along with other debt, to repay its 5¾% of $500 million senior notes due 2027, its 6 1/8% of $500 million senior notes due 2029, and all outstanding loans under its senior secured credit facility, with about $2.155 billion outstanding at June 30.

“The B2 CFR reflects NCR Atleos' solid market position and scale, balanced against moderately high leverage, initial expectation of modest cash flow generation relative to the adjusted debt load, and near-term muted growth given currency headwinds and the transition into larger ATM-as-a-service (ATMaaS) revenue streams which come with lower upfront revenue realization,” Moody’s said in a press release.

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