Moody's may lower CompuCom

Moody's Investors Service said it placed CompuCom Systems Inc.'s B2 corporate family and probability-of-default ratings and unsecured debt ratings on review for possible downgrade following an announcement that it would sell the company to Court Square Capital Partners for $628 million.

The company's $175 million senior notes due 2014 are rated Ba3 (LGD3, 30%) and its $150 million senior floating-rate payment-in-kind toggle notes due 2013 are rated Caa1 (LGD5, 85%).

The deal, expected to close in the second half, will be funded by equity and debt financing and could increase leverage above the current level of 4.8 times, Moody's said.

The company and its affiliates intend to make a cash tender offer for the $175 million senior unsecured notes and $150 million senior floating rate payment-in-kind toggle notes, Moody's said.

Moody's said its review will focus on the company's operating strategy under the new ownership and the deal's proposed financing and capital structure.

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