S&P rates Inmarsat revolver

Standard & Poor's said it assigned its BBB issue rating to the $750 million revolving credit facility issued by Inmarsat Investments Ltd. The recovery rating on this senior secured facility is 1, indicating an expectation of very high recovery in the event of a payment default, the agency said.

According to S&P the $750 million revolver replaces a $500 million forward start facility. That facility comprised a term loan that was repaid and a revolver that was cancelled in June.

S&P said the recovery rating of 1 on the new revolver reflects its view that although the security package provided to senior secured lenders is relatively weak, this is mitigated by the contractual subordination of the guarantee in favor of unsecured lenders vis a vis the senior guarantee in favor of the revolver. This subordination is the main structural protection for senior secured lenders, the agency said.

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