Moody’s: Heckler & Koch PDR to Caa3-PD/LD

Moody's Investors Service said it changed Heckler & Koch GmbH's probability of default rating to Caa3-PD/LD from Caa3-PD.

The Caa3 corporate family rating and the Caa3 senior secured rating were affirmed.

The outlook remains negative.

Moody’s said the change follows Heckler & Koch’s announcement that it repurchased a nominal amount of €45 million for a consideration of around €40 million of the company's €295 million senior secured notes due in May 2018, which in the agency’s view constitutes a distressed exchange. The company also stated its intention to conduct further debt purchases if market conditions are attractive and liquidity is deemed sufficient.

The /LD designation reflects Moody's view that the recent debt repurchase constitutes a distressed exchange under its definition of default. The agency’s definition of default is intended to capture events whereby issuers fail to meet debt service obligations outlined in their original debt agreements. It will remove the /LD designation from the probability of default rating in three business days.

© 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.