S&P: Oxea on positive watch

Standard & Poor's said it placed the B long-term corporate credit rating on Oxea Sarl, Luxembourg on CreditWatch with positive implications.

The ratings placed on CreditWatch positive include the B ratings on Oxea's senior secured €110 million revolving credit facility and first-lien term loans B-1 (€450 million) and B-2 ($535 million).

The recovery rating on these debt instruments is unchanged at 3, indicating 50% to 70% expected default recovery.

The agency also said it placed on CreditWatch positive the B rating on Oxea's $325 million (€248 million) second-lien term loan. The recovery rating on the second-lien term loan is unchanged at 6, indicating 0% to 10% expected default recovery.

The CreditWatch placement follows news that Oxea's private equity sponsor Advent has sold its 100% stake in Oxea to Oman Oil Co., which is wholly owned by the government of the Sultanate of Oman, S&P said.

The CreditWatch placement reflects a view that Oxea's credit quality could improve following the acquisition, the agency said.

The new owner apparently supports Oxea's strategy of capacity additions and the gradual shift of its product mix toward higher-margin derivative products, S&P said.

Operational synergies between Oxea and Oman Oil are expected, the agency added.

© 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.