Moody’s rates Ensono facilities B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Ensono, LP.

The agency also assigned a B2 (LGD3) rating to the company's proposed $520 million senior secured first-lien credit facility, which consists of a $460 million seven-year term loan and a $60 million five-year revolver, and a Caa2 (LGD6) rating to the senior secured second-lien eight-year term loan.

Proceeds will be used to finance the acquisition of Wipro Data Center and Cloud Services, Inc.'s hosted data center services business (DCS), refinance existing indebtedness, and pay fees and expenses related to the transaction.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects Ensono’s small scale, high leverage, customer concentration, the associated risks of integrating DCS with its operations, and the agency’s expectation of negative free cash flow for at least the next 12 to 18 months as a result of the company's growth profile.

© 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.