Moody's revises Aspect Software loan to B2

Moody's Investors Service said it revised the ratings on the proposed revolver and the first-lien term loan to B2 from B1 while affirming the first-time corporate family rating of B2 of Aspect Software Inc.

More specifically, Moody's changed the $475 million, up from $425 million, senior secured term loan due 2010 to B2 from B1, the $50 million revolver due 2010 to B2 from B1 and left unrated the $200 million, down from $250 million, second-lien secured term loan due 2010.

The outlook is stable.

Proceeds of the combined term loans are expected to finance the acquisition of Aspect Communications Corp. by Concerto Software Inc. with the new company to be named Aspect Software Inc.

The notching revision is a result of changes in the proposed financing structure which will increase the first-lien piece by $50 million and reduce the second-lien loan (unrated by Moody's) by the same amount.

Moody's said that while the change does not increase the overall leverage and will probably generate incremental interest savings and enhance overall interest coverage measures, it will increase the preponderance of the first-lien piece while reducing the amount of cushion afforded by now reduced second-lien loan. The revised plan will also lower asset protection and interest coverage for the first-lien term loan and revolving credit facility.

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