Moody's gives Galapagos notes Caa1, B1

Moody's Investors Service said it assigned Galapagos Holdings SA a B2 corporate family rating, a B2-PD probability of default rating and a provisional Caa1 rating to the planned €250 million senior notes.

At the same time, the agency assigned provisional B1 ratings to the planned €525 million senior secured fixed- and floating-rate notes issued by Galapagos SA.

The outlooks are stable.

In Moody's assessment of the priority of claims in a default scenario for Galapagos, it distinguishes between four layers of debt within the capital structure. The super senior revolving credit facility signed by Galapagos SA, the direct subsidiary of Galapagos Holdings, ranks ahead of all other debt located at the operating entities and the holding level.

Moody's said the €525 million of senior secured notes rank behind the revolving credit facility and at the same level as the trade payables. Behind these debt instruments are pension and lease obligations as well as at the lowest level the senior (unsecured) notes to be issued by Galapagos Holdings.

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