Moody's may cut Nycomed

Moody's Investors Service said it placed all ratings of Nyco Holdings ApS and its subsidiaries under review for possible downgrade following the announcement of a change in ownership of the company and the proposed €400 million debt issuance in the form of PIK notes at Nycomed A/S.

The company announced that its existing shareholders led by DLJ Merchant Banking and The Blackstone Group have signed a definitive agreement to sell a major part of their shareholding to Nordic Capital Fund V. Moody's noted the possibility that the sale may trigger the change-of-control provision under its senior notes and if required to repurchase any senior notes thereby tendered, the company would use availability under its senior facilities to do so.

Proceeds of the PIK notes will be used to fund a shareholder distribution as well as repayment of the company's 16% mezzanine notes.

Ratings placed under review include the B1 senior implied rating, the B3 issuer rating, the B3 rating for the €225 million senior notes due 2013 at Nyco Holdings 2 ApS, and the B1 rating for the senior credit facilities at Nyco Holdings 3 ApS.

© 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.