Moody's affirms Skype

Moody's Investors Service said it affirmed Springboard Group Sarl's (Skype) B2 corporate family rating and B2 probability of default rating, following the announcement that the private equity groups acquiring the company and eBay (rated A3) have reached a wholesale settlement with Skype's founders over all software previously licensed from Joltid, which will end all litigation currently pending against the investor group and eBay at the closing of the acquisition.

Under the terms of the legal agreement, Joltid, their advisors and affiliated companies will receive certain cash payments and up to 14% equity in the company, the agency said.

As part of the rating action, Moody's said it affirmed the B1 (LGD3, 43%) senior secured instrument ratings for the $30 million senior secured revolving credit facility and $700 million of senior secured term loan expected to be issued through Springboard Finance LLC, the primary US operating subsidiary of Skype. The outlook remains stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.