S&P rates Syniverse loan BB-

Standard & Poor's said it assigned its BB- bank loan rating and 1 recovery rating to Syniverse Technologies Inc.'s proposed $290 million senior secured bank facility. At the same time, S&P affirmed its B+ corporate credit rating, with a stable outlook, and B- senior subordinated debt rating.

Proceeds from the proposed term facility, along with about $370 million of proceeds from Syniverse's planned initial public offering, will be used to redeem $252 million of preferred stock, repay all borrowings outstanding under the existing credit facility and tender for about $86 million of the company's $245 million senior subordinated notes.

S&P said the ratings reflect Syniverse's presence in a narrow niche market in which the company must remain at the forefront of new wireless protocols to maintain a competitive advantage, its reliance on growth in roaming transactions in a consolidating wireless telecommunications market and its moderately acquisitive growth strategy.

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