S&P rates Kleopatra loan B

S&P said it assigned Kleopatra Holdings 1 SCA’s planned €1.175 billion senior secured term loan, denominated in euros and U.S. dollars, due 2026 a B rating with a 3 recovery rating to be used in a refinancing. Concurrently, S&P upgraded Kleopatra’s issuer rating to B from B-.

Kleopatra also plans to secure a €150 million revolving credit facility due 2025 to replace its current €150 million revolver, around €400 million senior secured and €325 million senior debt, planned for the next few weeks.

“The proposed refinancing will extend the group's debt maturity profile. Our B issuer credit rating reflects KH1's pro forma capital structure after the completion of its proposed refinancing. We understand that KH1 will use the proceeds from the new debt to repay its €1.4 billion senior secured term loan due June 2022 and redeem its €395 million PIK notes (€473 million outstanding) due June 2023; the remainder of proceeds will fund transaction costs and accrued interest,” S&P said in a press release.

The outlook is stable.

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