Research Update: Iron Mountain Inc. 'BB-' Rating Affirmed; Off Watch; Outlook Negative; $950M Subordinated Notes Rated 'B+'

Iron Mountain is in the process of amending its credit agreement to increase its margin of compliance with its fixed-charge coverage covenant. The company is also planning to issue $950 million of senior subordinated notes due 2024, proceeds of which it would use to redeem its 8.75% notes due 2018, to call its 6.625% notes due 2016, to repay borrowings under its revolving credit facility, and for general corporate purposes including covering costs related to its planned conversion to a Real Estate Investment Trust (REIT). We are affirming our 'BB-' corporate credit rating on the company, removing all ratings from CreditWatch, and assigning a 'B+' rating to its proposed $950 million notes due 2024. The negative outlook reflects our expectation

...+ Iron Mountain is in the process of amending its credit agreement to increase its margin of compliance with its fixed-charge coverage covenant. + The company is also planning to issue $950 million of senior subordinated notes due 2024, proceeds of which it would use to redeem its 8.75% notes due 2018, to call its 6.625% notes due 2016, to repay borrowings under its revolving credit facility, and for general corporate purposes including covering costs related to its planned conversion to a Real Estate Investment Trust (REIT). + We are affirming our '##-' corporate credit rating on the company, removing all ratings from CreditWatch, and assigning a 'B+' rating to its proposed $950 million notes due 2024. + The negative outlook reflects our expectation that leverage will increase and that the company's conversion to a REIT could reduce its business and financial flexibility....

Research Update