Moody's rates Odeon bond B3, loan Ba2

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Odeon & UCI Bond Midco Ltd., the holding company of the Odeon & UCI cinema group.

Moody's assigned a provisional B3 (LGD4, 62%) rating to the group's proposed £475 million senior secured bond to be issued by Odeon & UCI Finco plc and a provisional Ba2 (LGD1, 7%) rating to the new £90 million super senior revolving credit facility.

The outlook is negative.

The ratings on Odeon consider the high financial leverage of the group, its limited organic revenue growth potential and event and execution risks associated with the current strategy of the group, the agency said.

The ratings consider the solid business profile of the group, its market leadership position across Europe and the historically relatively stable nature of the cinema industry, the agency added.

The ratings also reflect the good track record of the group and the expectation that the company will be free cash flow-positive and maintain a sound liquidity profile going forward as well as risks from the acquisitive appetite of the group, Moody's said.

© 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.