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

Standard & Poor’s said it assigned a B long-term corporate credit rating to Galapagos Holdings SA.

The outlook is stable.

The agency also said it assigned a BB- rating to the super senior secured facilities issued by Galapagos SA, comprised of a €75 million revolving credit facility and €400 million guarantee facility.

The recovery rating on these facilities is 1, reflecting 90% to 100% expected default recovery.

S&P also assigned a B rating on the senior secured notes issued by Galapagos with a recovery rating of 4, indicating 30% to 50% expected default recovery.

The agency also assigned a CCC+ rating to the senior unsecured notes issued by Galapagos Holding. The recovery rating on these notes is 6, reflecting 0% to 10% expected default recovery.

The ratings are at the same level as the preliminary ratings assigned in May, the agency said.

The ratings reflect the group’s relatively aggressive capital structure following the proposed leveraged buyout by private equity group, Triton, S&P said.

The buyout was announced in April and is expected to be completed by the end of 2014, the agency said.

Based on the proposed capital structure after the buyout, S&P said it estimates the group’s adjusted net debt-to-EBITDA ratio will be at about 6.5x by Dec. 31.

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