Moody's rates Omnitracs loans B1, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Omnitracs, Inc., as well as a B1 rating on its proposed first-lien senior secured facilities and Caa1 on the second-lien facilities.

The facilities are being used to finance the acquisition of the Omnitracs fleet management systems business from Qualcomm, Inc. by private equity firm Vista Equity Partners.

The outlook is stable.

Moody's said the B2 corporate family rating reflects the high leverage as a result of the acquisition and cyclical nature of the business. The ratings also reflect the leading position Omnitracs has built providing fleet management software and communications systems for the long haul trucking industry, its strong recurring revenue base, high retention rates and cash generating capabilities, the agency said.

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