Moody’s assigns Cardtronics loan Ba2

Moody’s Investors Service said it assigned a Ba2 rating to the proposed first-lien term loan issued by Cardtronics, Inc.’s subsidiary Cardtronics USA, Inc.

The agency also downgraded its ratings on the company’s 5½% $300 million of senior unsecured notes to B2 from B1. As part of the rating action, Moody’s also affirmed Cardtronics’ Ba3 corporate family rating and Ba3-PD probability of default rating.

Concurrently, Moody’s upgraded the company’s speculative grade liquidity rating to SGL-1 from SGL-2.

“The rating action reflects the pro forma impact of Cardtronics’ planned repayment of existing revolver borrowings with proceeds from the proposed $500 million term loan and Moody’s expectation that the company will utilize existing cash on its balance sheet to fund the repayment of the maturing 1% convertible senior notes in December 2020,” the agency said in a press release.

The notes’ downgrade reflects their reduced recovery prospects given the increased amount of priority secured debt ahead of these securities in the pro forma debt structure, Moody’s said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.