Moody’s upgrades Nassa, facilities

Moody's Investors Service said it upgraded Nassa Finco AS' (Nets or the company) corporate family rating to Ba2 from B2 and probability of default rating to Ba2-PD from B2-PD.

Concurrently, the agency upgraded the instrument ratings on the senior secured bank facilities issued by Nassa Midco AS and Nets Holding A/S, both subsidiaries of the company, to Ba2 from B2.

The outlook on all ratings is stable. This concludes the review for upgrade initiated on Sept. 15.

Moody's will subsequently withdraw the ratings of the senior secured bank facilities. These facilities were repaid on Sept. 27 following the successful completion of the initial public offering (IPO) of Nets A/S and the listing of its shares on Nasdaq Copenhagen on Sept. 23.

The roughly Kr 5.5 billion of proceeds from the issuance of new shares alongside cash on balance sheet and drawings under new banking facilities were used to (a) repay Kr 4.2 billion of payment-in-kind (PIK) loan outstanding as of June 30 and its make whole premium issued by Nassa Holdco AS, Nets' parent company; (b) repay the company's outstanding senior secured bank facilities; and (c) pay transaction fees.

Based on the new banking facilities agreement, Moody's noted that Nets A/S is the top entity of the banking group and will report audited consolidated accounts going forward. The new banking facilities consist of a €485 million term loan 1 maturing in 2019, a €485 million term loan 2 maturing in 2021, and a €475 million revolving credit facility maturing in 2021 raised by Nassa Midco AS.

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