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Published on 9/26/2006 in the Prospect News Bank Loan Daily.

Moody's rates VeriFone loans B1

Moody's Investors Service said it affirmed VeriFone Inc.'s B1 corporate family rating and assigned B1 ratings to the company's new $40 million senior secured first-lien revolving credit facility due 2012 and $500 million senior secured first-lien term loan facility due 2013.

The outlook was revised to stable from negative.

Proceeds from the new facilities will be used to finance the company's pending acquisition of Lipman Electronic Engineering Ltd.

The agency said the rating reflects the favorable demand outlook in the point-of-sale payment solutions sector, VeriFone's strong market position after the Lipman acquisition in an industry that is dominated by a few key players worldwide and VeriFone's track record in recent years in growing revenue, profitability and cash flow. In addition, half of the transaction consideration is via issuance of equities, and the resultant capital structure is relatively conservative with debt to EBITDA of 3.1 times.


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