Moody's rates Dematic unit notes Caa1

Moody's Investors Service said it affirmed the B2 corporate family and probability of default ratings on Dematic Holding Sarl.

Concurrently, the agency said it assigned a Caa1 rating to the $275 million PIK notes due Nov. 1, 2016, which were issued by a finance vehicle of Dematic Holding, Mirror PIK SA.

The ratings on the existing $300 million senior secured notes due May 2016 issued by Dematic SA, a direct subsidiary of Dematic Holding Sarl, were upgraded to B1 from B2.

At the same time, Moody's said it changed the outlook on the ratings to negative from stable.

The proposed $275 million PIK notes will have a coupon of 9% cash interest with a four year maturity and will be guaranteed by Dematic Holding Sarl.

The change in the outlook was prompted by the issuance of $275 million PIK notes with the proceeds being used for a special dividend payment to Dematic's owner Triton in the same amount. Moody's said the proposed transaction reflects an increasingly aggressive financial policy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.