S&P rates Galapagos loans BB-, notes B & CCC+

Standard & Poor's said it assigned its preliminary B long-term corporate credit rating to Galapagos Holdings SA.

The outlook is stable.

At the same time, S&P assigned:

• A preliminary BB- issue rating to the proposed super senior secured facilities, comprising a €75 million revolving credit facility and a €400 million guarantee facility. The preliminary recovery rating on these facilities is 1, reflecting expectations of very high (90%-100%) recovery;

• A preliminary B issue rating to the proposed senior secured notes, with a preliminary recovery rating of 4, albeit at the lower end of the 30%-50% range; and

• A preliminary CCC+ issue rating to the proposed senior unsecured notes. The preliminary recovery rating on these notes is 6, reflecting expectations of negligible (0%-10%) recovery.

S&P said the ratings reflect its view of the group's relatively aggressive capital structure following the proposed leveraged buyout by private equity Group Triton. The buyout was announced on April 16 and is expected to be completed by the end of this year.

© 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.