Moody's may raise Directed Electronics

Moody's Investors Service said it placed the B2 corporate family rating and B2 senior secured credit facility ratings of Directed Electronics under review for possible upgrade following recent operating performance improvements and expected repayment of its subordinated notes with the proceeds expected to be received from its anticipated initial public offering.

Ratings under review include the company's senior secured revolving credit facility at B2, senior secured term loan at B2 and corporate family rating at B2.

The company filed the second amendment to its registration statement for common equity, the proceeds of which are expected to be used to repay two subordinated notes totalling $74 million. If the IPO is completed under its current terms, the company's corporate family rating and secured credit facility (revolver and term loan) ratings will likely be upgraded to B1 from B2, Moody's said.

The rating review will focus on the use of net proceeds from the IPO, which Moody's said it expects to be applied to the repayment of subordinated notes.

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