S&P: Sophos facilities at B+

Standard & Poor's said it assigned a B+ rating to Sophos Ltd.'s proposed secured credit facilities, one notch above the corporate credit rating of B.

The agency also said it assigned recovery ratings of 2 to the senior secured facilities, indicating 70% to 90% expected recovery in a default.

The proposed $460 million senior secured facilities due 2017 to be issued by Shield Finance Co. SARL will fund the purchase of Astaro, the company that will accede as a guarantor of the secured credit facilities, S&P said.

The agency said it understand these facilities will benefit from the same comprehensive security package as the existing credit facilities, including security on fixed assets and all the material intellectual property of the guarantors and the borrower.

The recovery ratings do not incorporate event risk linked to reputational damage, S&P said. Should such an event occur, the agency said it believes the business would be liquidated, which would leave negligible value for the debtholders due to the limited tangible asset base.

© 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.