Moody's gives Stream Global, notes B1

Moody's Investors Service said it assigned first-time ratings to Stream Global Services, Inc. (corporate family rating of B1; probability of default rating of B1; senior secured notes rating of B1; and speculative-grade liquidity rating of SGL-2) with a stable outlook.

The ratings were assigned in connection with Stream's proposed acquisition of BPO provider eTelecare Global Solutions, Inc. in a stock-for-stock exchange, the agency said.

Following transaction closing, existing Stream and eTelecare shareholders will own roughly 57.5% and 42.5%, respectively, of the combined company, the agency noted.

Net cash proceeds from the proposed $200 million of senior secured notes plus balance sheet cash will be used to refinance existing debt at both companies and for general corporate purposes, the agency said.

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