Omnitracs Inc., a provider of connectivity hardware and software to the transportation and logistics industry, is issuing $150 million of incremental term loans to finance its acquisition of XRS Corp., a competitor. The incremental issuance consists of a $110 million first-lien term loan and $40 million second-lien term loan. We are affirming our 'B' corporate credit rating on the company. In addition, we are revising our recovery rating on Omnitracs' first-lien debt to '3' from '2' and lowering the issue-level rating to 'B' from 'B+' We are affirming the 'CCC+' issue-level rating, with a '6' recovery rating, on the second-lien debt. The stable outlook reflects our expectation that Omnitracs will sustain recent improvements in EBITDA margins and that leverage will
