Moody's rates KORE Wireless loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating to KORE Wireless Group Inc., along with a B3-PD probability of default rating and a B2 rating on the proposed senior secured first-lien term loan and revolving credit facility.

The agency also said it assigned a Caa2 to the proposed senior secured second-lien term loan.

The outlook is stable.

The proceeds will be used to refinance the company's $323 million of existing debt and partially fund the purchase of a European mobile virtual network operator and electronic subscriber identification module (eSIM) technology provider, Moody's said.

The ratings reflect KORE's small revenue scale, narrow operating scope and very high debt-to-EBITDA of more than 8x as of June 30, 2018 on a pro forma basis, the agency said.

Moody's said it expects leverage with fall to less than 7x over the next 12- to 18-months, Moody's said.

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