DataPipe, Inc. -- Moody's affirms Datapipe CFR at B3, upgrades 1st lien to B1 and changes outlook to stable

New York, July 08, 2015 -- Moody's Investors Service ("Moody's") has affirmed Datapipe, Inc.'s ("Datapipe" or "the company") B3 corporate family rating (CFR) and B3-PD Probability of Default Rating (PDR) along with the Caa2 rating on its 2nd lien term loan, following the company's announcement that it will raise $60 million in preferred equity and receive about $25 million of proceeds from a sale lease-back transaction. The use of proceeds will be to repay the outstanding revolver balance, to pay related fees and expenses and the remaining amount, about $50 million, will be added as cash to the balance sheet. Consequently, Moody's has upgraded the senior secured 1st lien credit facilities to B1 from B2 reflecting the improvement in expected loss on the 1st lien debt following the injection of equity capital. The outlook has been changed to stable to reflect a more balanced financial policy and an improved liquidity position following the equity infusion.

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