S&P rates Garfunkelux notes B+

S&P said it revised to negative from stable its outlook on Garfunkelux Holdco 2 SA, which consolidates the activities of the main operating subsidiaries Lowell Group Ltd. and GFKL Financial Services GmbH.

S&P affirmed the B+ long-term and B short-term issuer credit ratings.

At the same time, S&P assigned a B+ issue rating and recovery rating of 3 to the proposed €230 million senior secured floating-rate notes issued by Garfunkelux Holdco 3 SA (Garfunkelux 3).

S&P also affirmed the B+ issue rating and recovery rating of 3 on the existing €365 million and £565 million senior secured notes. The agency affirmed the BB issue rating and recovery rating of 1 on the €200 million revolving credit facility co-issued by Garfunkel Holding GmbH and Simon Bidco Ltd. S&P also affirmed the B- issue rating and recovery rating of 6 on the £230 million senior unsecured notes issued by Garfunkelux 2.

Garfunkelux 2 announced on Sept. 12 that Garfunkelux 3 intends to issue €230 million floating-rate notes.

“We understand that the proceeds will be used to refinance a €230 million bridge facility – which financed a corporate acquisition – and pay related fees and expenses. The acquisition is that of Germany-based third-party debt collections company Tesch Inkasso Group (Tesch), which the group announced on Aug. 12, 2016,” S&P said in a news release.

“We believe that the debt-financed acquisition of Tesch signals a loosening of financial policy relative to our previous expectations and increases risks relating to operational integration,” S&P noted in its release.

© 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.