Moody’s rates Verifone loans B1, Caa1

Moody's Investors Service said it assigned to Verifone Systems, Inc. a B2 corporate family rating, B2-PD probability of default rating, and B1 and Caa1 ratings to the company's proposed first-lien and second-lien credit facilities, respectively.

The outlook is stable.

The proceeds from the new credit facilities will be used to complete the acquisition of Verifone by a consortium led by Francisco Partners for about $3.4 billion, including net debt.

Moody's said it expects to withdraw Verifone, Inc.'s existing ratings upon the close of the acquisition.

“The B2 corporate family rating reflects Verifone's high expected leverage and elevated execution risk over the next 12 to 18 months,” the agency said in a news release.

“Execution risk will be elevated as Verifone will implement significant cost and operating expense savings over the about 18 months after the close of the acquisition.”

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