Moody's alters Syniverse direction to uncertain

Moody's Investors Service said it changed Syniverse Holdings, Inc.'s ratings review to direction uncertain from under review for upgrade.

The ratings on review, include its Caa1 senior secured first-lien bank credit facility and Caa3 senior secured second-lien bank credit facility rating.

Concurrently, Moody's withdrew the B2 rating assigned to Syniverse's planned $1 billion seven-year senior secured first-lien term loan and a $165 million five-year revolver assigned on Jan. 14, because Syniverse terminated the refinancing transaction.

Syniverse no longer plans to pursue a SPAC merger and instead agreed to Twilio acquiring a minority stake.

“The change in the direction of the review to direction uncertain reflects increased uncertainty as to Syniverse's ability to complete the transactions outlined in the proposed alternative plan following the termination of the SPAC merger agreement. If the transactions are not completed, the ratings could be downgraded given very high financial leverage and refinancing risks related to significant near-term debt maturities. On the other hand, Syniverse's ratings could be upgraded if the proposed transactions are consummated,” Moody’s said in a press release.

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