Moody's assigns Caa1 to Codere notes

Moody's Investors Service said it assigned a Caa1 rating to the planned €129 million of backed super-senior secured notes to be issued by Codere Finance 2 (Luxembourg) SA as part of the ongoing restructuring.

Codere SA's Ca corporate family rating and C-PD/LD probability of default rating and the ratings of Codere Finance 2 (Luxembourg) remain unchanged together with the outlook on both entities, the agency said.

“Using Moody's loss given default for speculative-grade companies methodology, the new money tranche is rated Caa1, three notches above the current CFR of Ca, due to priority over the proceeds in an enforcement as it ranks ahead of the reinstated backed senior secured notes and subordinated PIK notes,” Moody’s said in a press release.

The tranche will be used to provide additional liquidity and pay for transaction fees and expenses.

The €250 million backed super-senior secured notes issued in 2020, €103 million backed senior secured bridge notes issued in 2021 and new €129 million new money tranche rank pari passu and share the same guarantee and security packages.

Upon completion of the planned restructuring, expected on Nov. 5, the three instruments will be merged into €482 million of super-senior secured notes due September 2026 to be issued by Codere Finance 2 (Luxembourg).

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