Moody's: Wind Acquisition unaffected

Moody's Investors Service said the proposed €1.67 billion payment-in-kind loan issued by Wind Acquisition Holdings Finance SA adds additional complexity to the broader ownership group but does not warrant a change in the Ba3 corporate family rating of Wind Acquisition Finance SA. Wind Acquisition Holdings Finance is an associated company of Wind Acquisition Holdings Finance SpA, the direct holding company of Wind Acquisition Finance.

Nevertheless, the agency said the proposed transaction could potentially reduce financial flexibility within the broader ownership group in the event that the proposed loan is not ultimately redeemed through an initial public offering or other shareholder action as intended at this stage.

Moody's understands that the €1.67 billion five-year floating-rate PIK loan will be used to pay the first installment of the acquisition of Enel's 26.1% stake in Weather Investments SpA for €1.96 billion. The PIK loan will also refinance the existing €587 million PIK loan at Wind Acquisition Holdings Finance SA.

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