Moody's rates IPC Acquisition loans Ba3, Caa1

Moody's Investors Service said it assigned a Ba3 rating to IPC Acquisition Corp.'s proposed $50 million senior secured first-lien revolving credit facility and $415 million senior secured first-lien term loan and a Caa1 rating to its proposed $170 million senior secured second-lien term loan.

The agency also assigned a B3 probability of default rating to the company and affirmed its B2 corporate family rating.

The outlook is stable.

Proceeds from the credit facilities and up to $253 million in new sponsor equity will be used to repay about $423 million of existing debt and to fund the acquisition of IPC equity by Silver Lake Partners.

Moody's said the ratings broadly reflect IPC's high leverage and moderate prospects for meaningful free cash flow generation. Pro forma for the acquisition financing, adjusted debt to EBITDA for the fiscal year ending in Septmeber will be nearly 6.9x.

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