Moody's assigns Redexis, notes Baa3

Moody's Investors Service said it assigned a definitive Baa3 issuer rating to Redexis Gas, SA.

Concurrently, the agency assigned a Baa3 rating to the €650 million 2¾% notes due 2021 issued by Redexis Gas Finance BV under the provisional Baa3-rated €2 billion euro medium term note program with the benefit of the guarantee of Redexis.

The outlooks are stable.

Moody's said the €650 million seven-year bond will be used to refinance the company's existing debt of the same amount and should ensure a stable long-term capital structure for the company at a favouable funding cost.

The bond is complemented by a €250 million five-year capex facility and a €50 million five-year working capital facility, providing the company with multi-year liquidity.

The Baa3 rating assumes that the shareholder loans totaling €451 million at the end of 2013 (including principal and accrued interest) will be cancelled on closing of the bond, the agency said.

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