Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers L > Headlines for Lion/Gem Luxembourg 3 Sarl > News item |
S&P might cut Lion/Gem Luxembourg
Standard & Poor's said it placed its B- corporate credit rating on Lion/Gem Luxembourg 3 Sarl (Findus) on CreditWatch with negative implications.
At the same time, the agency placed its B- issue ratings on Findus' senior secured notes and CCC issue ratings on the subordinated PIK notes on CreditWatch negative.
Nomad Foods Ltd. entered into an option agreement with Findus under which Nomad is obliged, at the option of Findus, to acquire the group's continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for about £500 million.
The purchase amount is planned to be split between £100 million of ordinary shares in Nomad's capital and a cash portion of £400 million.
If the option is exercised, the agency understands that Findus will use the cash proceeds to repay the roughly £370 million senior secured notes.
However, S&P said it understands that Findus is currently evaluating its options with respect to the refinance or transfer of the roughly £155 million subordinated PIK toggle notes, whose repayment will be triggered under the change-of-control clause.
The CreditWatch negative status indicates that there is at least a one-in-two likelihood that S&P may lower the rating if Findus fails to successfully refinance its outstanding debt obligations or if the agency would not view the new capital structure as commensurate with the current rating.
© 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.