Moody’s reviews Dometic

Moody's Investors Service said it placed the B3 corporate facility rating and B3-PD probability of default rating of Dometic Group AB on review for upgrade after Dometic filed for an initial public offering on Nasdaq Stockholm.

The Caa2 rating of the outstanding SEK 2,662,000,000 equivalent PIK toggle notes remains unchanged on the expectation that these notes will be repaid from the IPO proceeds.

Moody’s said the action follows Dometic's definitive IPO filing and the publication of the IPO prospectus on Nov. 11. It plans to raise SEK 4.6 billion from the issuance of new shares by Nov. 27.

The company also announced that on Oct. 27, it arranged new bank credit facilities with four Swedish banks to partially refinance the existing bank credit facilities and repay the remainder with the IPO proceeds. The new bank credit facilities include a multi-currency revolving credit facility of around SEK 1,235,000,000 equivalent, amortizing term loans of around SEK 1.02 billion equivalent and other term loans of around SEK 3,569,000,000 equivalent.

Dometic plans to use the SEK 4.6 billion IPO proceeds to completely repay the outstanding SEK 2,662,000,000 equivalent PIK toggle notes and also to reduce a portion of the senior secured bank debt on Dec. 2, 2015.

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