Moody's: Global Imaging positive

Moody's Investors Service said it has affirmed Global Imaging System Inc.'s senior implied rating of Ba3, $70 million senior secured revolver due 2009 rated Ba3; $209 million senior secured term loan due 2010 rated Ba3; and $50 million convertible senior subordinated notes due Nov. 15, 2008 rated B2.

At the same time, Moody's has changed the company's outlook to positive from stable.

Global Imaging recently executed an amendment whereby a $70 million incremental term loan was added to the original $139 million outstanding term loan B for a combined $209 million. Proceeds from the $70 million incremental term loan along with $35 million of cash and $26 million from an equity issuance were used to pay for the acquisition of Imagine Technology Group from Goense & Partners for about $130 million.

In conjunction with the $70 million incremental term loan, the company reduced the revolver commitment by $20 million to $70 million.

Moody's said the ratings reflect the company's strong free cash flow generation, history of deleveraging, and consistent revenue and EBITDA growth, as well as the company's aggressive acquisition strategy.

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