Moody's might lift Brightstar

Moody's Investors Service said it placed the ratings of Brightstar Corp., including its Ba3 corporate family rating, on review for upgrade following the announcement that the company entered into a series of definitive agreements with Softbank Corp. that stand to improve Brightstar's credit profile.

SoftBank will acquire 57% ownership in Brightstar for roughly $1.3 billion, with warrants to increase its ownership stake to 70%. In addition, Softbank intends to guarantee Brightstar's rated debt, and will augment the company's cash balances.

Moody's said it expects Brightstar to become the preferred mobile supply chain vendor for Softbank's Sprint Communications subsidiary in the United States, with potential to pick up more distribution and value-added supply chain services from Softbank's portfolio companies and other telecom operators around the world.

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