S&P cuts Lantiq debt, ups loan

Standard & Poor's said it revised Lantiq Beteiligungs-GmbH & Co. KG outlook to negative from stable due to the revised terms of its proposed $210 million senior secured facilities.

S&P also lowered the debt rating to BB- from BB on the proposed $20 million senior secured revolving credit facility to be borrowed by Lantiq's subsidiary Lantiq Deutschland GmbH and revised the recovery rating on the debt to 2 from 1.

S&P raised the issue rating to BB- from B+ on the proposed $190 million senior secured term loan to be borrowed by Lantiq Deutschland GmbH and revised the recovery rating on this debt to 2 from 4.

The issue and recovery ratings are based on draft documentation dated Nov. 8, S&P said.

The outlook revision reflects the revised draft credit agreement's significantly higher mandatory debt amortization schedule, higher interest costs and an overall tighter maintenance covenant schedule than in the draft credit agreement previously received, the angency said.

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