Moody's: Datapipe loans B2

Moody's Investors Service said it assigned a first-time B3 corporate family rating and B3-PD probability of default rating to Datapipe, Inc.

The agency also said it assigned B2 (LGD 3, 34%) ratings to the company's proposed $40 million senior secured revolver due 2018 and $202 million senior secured first-lien term loan due 2019 and a Caa2 (LGD 5, 85%) rating to the proposed $85 million senior secured second-lien term loan due 2019.

The proceeds will be used primarily to finance a recapitalization that results in existing equity investor ABRY Partners in having a majority ownership interest of the company acquisition, Moody's said.

The outlook is stable.

The ratings reflect its small scale, high leverage and the competitive pressure within the datacenter space, the agency said.

These limiting factors are offset by Datapipe's stable base of contracted recurring revenues and its established position within its high growth niche market, Moody's said.

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