S&P rates VeriFone loan BB-

Standard & Poor's said it affirmed its BB- corporate credit rating on VeriFone, Inc. and assigned its BB- debt rating, with a recovery rating of 3, to the proposed $540 million first-lien bank facility.

The bank facility consists of a $40 million revolving credit facility and a $500 million term loan, the agency said, noting that proceeds from the facility, along with $475 million of cash and equity, will be used to fund the acquisition of Lipman Electronic Engineering Ltd.

The outlook is negative.

S&P said that the ratings on VeriFone reflect the company's increased debt leverage, acquisitive growth strategy and relatively short financial history as an independent entity, adding that these factors are partially offset by VeriFone's leading position in the niche market for electronic payment solutions, a diversified customer base and, pro forma for the proposed acquisition, expanded market and product base.

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