Moody's: VeriFone unaffected

Moody's Investors Service said VeriFone, Inc.'s ratings and stable outlook are not affected by the company's offer to purchase the outstanding common stock of competitor Hypercom Corp. for $5.25 per share in cash, or $337 million. The offer has been rejected.

VeriFone has B1 corporate family and probability of default ratings, and its $40 million senior secured revolving credit facility due 2012 and $223 million senior secured term loan due 2013 are rated Ba2 (LGD2, 21%).

In Moody's view, based on the terms outlined in the company's letter to Hypercom's board of directors, VeriFone's credit metrics would remain within the tolerance ranges expected for the company's B1 corporate family rating.

If completed, the company plans to fund the acquisition with cash on hand and borrowings under a new committed credit facility, which will also be used to refinance the existing bank credit facilities.

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