S&P: Spie on positive watch

Standard & Poor’s said it placed Spie Bondco 3 SCA’s B+ long-term corporate credit rating CreditWatch with positive implications, along with the ratings on its indirect subsidiary, Financiere SPIE.

The agency also said it affirmed the B+ rating on the €625 million senior facilities due in August 2019 issued by Spie SA; €100 million acquisition facility due 2018; €100 million acquisition facility due 2017; €200 million revolving credit facility due 2020; €392 million bank loan due in 2021; and €585 million term loan B due in 2021 issued by Clayax Acquisition 4 SAS and guaranteed by Financiere SPIE.

The recovery rating on these instruments is 4.

S&P also said it affirmed the B- rating on the second-lien facilities due in 2019 and 2021 issued by SPIE SA. The recovery rating on this instrument is 6.

The CreditWatch placement reflects a view that Spie’s recently announced initial public offering could meaningfully improve its financial risk profile, the agency said.

The group aims to raise about €700 million to lower its reported net debt-to-EBITDA ratio to less than 2.5x by year-end 2015, S&P said.

The company’s business risk profile continues to reflect the group’s low earnings volatility, fragmented and diverse customer base and improving geographic diversity, the agency said, balanced against its limited product range and lower-than-average margins compared with other facility services providers.

© 2015 Prospect News.
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