Moody's: VeriFone loan Ba3

Moody's Investors Service said it confirmed VeriFone Inc.'s Ba3 corporate family rating and assigned a Ba3 rating to the company's $1.6 billion of proposed senior secured credit facilities.

The agency also said it lowered its probability of default rating to B1 from Ba3.

The outlook is stable.

The confirmation ends a review of VeriFone's ratings that began on Nov. 14 in response to news of its plan to acquire Point, Moody's said.

The proceeds from the new credit facilities and cash on hand will be used to fund the purchase of Point, refinance the company's and Point's existing debt and pay related fees, the agency said.

Moody's said it will withdraw the ratings on existing debt once it is repaid.

The debt-financed acquisition will raise VeriFone's total debt-to-EBITDA to about 4.6x from 2.6x, the agency said.

The ratings reflects a belief that VeriFone will be able to restore its leverage to less than 3x over the next 12 to 18 months through EBITDA growth and debt repayment beyond required amortization, Moody's said.

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