Moody's gives WestCom loans B1

Moody's Investors Service said it assigned a B1 rating to WestCom Corp.'s proposed $15 million senior secured revolving credit facility and $105 million senior secured term B loan, both due 2010.

Additionally, Moody's said it assigned WestCom a B2 corporate family rating.

The ratings broadly reflect WestCom's leverage subsequent to the company's decision to recapitalize its balance sheet with Canadian Income Participating Securities (IPS) with its ongoing commitment to distribute nearly all-excess cash to IPS holders, the agency said.

The B1 rating assigned to the senior secured credit facilities, which is one notch higher than the corporate family rating, generally reflects superior asset coverage as the total drawn amount, which Moody's believes will be about $107 million, the agency said.

The outlook on all is stable.

The B2 corporate family rating reflects the increase in leverage along with the ongoing commitment to distribute nearly all excess cash flow to the IPS holders, Moody's said.

The ratings also reflect Moody's general concern that WestCom's tendency to grow through acquisitions poses potential ongoing integration challenges. WestCom recently funded its $25 million purchase of Global Crossing's trader voice business on May 3 and intends to acquire Trade Lines Communications Inc. for about $11 million shortly, the agency added.

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