Fitch rates Helios Towers Nigeria notes B

Fitch Ratings said it assigned a long-term issuer default rating of B to Helios Towers Nigeria Ltd. following a successful placement of $250 million of 8 3/8% senior unsecured notes due 2019.

The notes have been assigned a final B rating with recovery rating of RR4, Fitch added.

The outlook is stable.

Helios Towers issued $250 million of senior unsecured notes due in 2019 through a fully owned finance subsidiary Helios Towers Finance Netherlands BV.

The notes are guaranteed by Helios and Tower Infrastructure Co. Ltd., a fully owned subsidiary of Helios Tower, which owns part of the group’s tower infrastructure assets.

The notes are rated at the same level as the company’s issuer default rating of B as they constitute a direct, unconditional and unsecured obligation of Helios Tower and of other guarantors, the agency said, and rank pari passu with all existing and future unsecured obligations of Helios Tower.

The bond documentation includes cross-default and change of control provisions, as well as incurrence tests limiting additional indebtedness and restricted payments, Fitch said.

The Nigerian economy is seeing rapidly increasing demand for mobile and broadband communication services, the agency said.

Given a distinct lack of fixed-line infrastructure, poor mobile coverage and regulatory pressure to improve quality of service, mobile operators are expected to continue investing in voice and data capacity, Fitch said.

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