Moody's upgrades Syniverse

Moody's Investors Service said it upgraded Syniverse Holdings, LLC's corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

The agency changed the outlook to stable from rating under review. This concludes the review for upgrade initiated on Aug. 19. Concurrently, Moody's affirmed the B3 rating on Syniverse's senior secured first-lien credit facility due 2027.

The rating actions follow Syniverse's announcement Monday that it had closed on the previously announced refinancing, raised $340 million in new preferred equity and entered a strategic partnership transaction with Twilio Inc.

“The upgrades reflect the company's improved liquidity, significant debt reduction and enhanced financial flexibility as a result the completed transactions. Syniverse used the proceeds from the roughly $1.1 billion of new common and preferred equity capital (net of fees and expenses) to repay its existing debt, reducing its debt burden in half. For LTM Feb-2022, Moody's estimates pro forma LTM Debt/EBITDA of 5.6x down from 9.7x for the same period (both metrics are Moody's adjusted). The company's improved balance sheet enhances its financial flexibility to invest in growth,” the agency said in a press release.

© 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.