Moody’s assigns Ba3 to Ziggo loans

Moody's Investors Service said it assigned Ba3 ratings to the €750 million term loan C due 2024 issued by Ziggo Secured Finance BV and the $750 million term loan D due 2024 issued by Ziggo Secured Finance Partnership.

Ziggo Secured Finance and Ziggo Secured Partnership are SPV borrowing vehicles, indirectly owned by a Dutch Foundation.

Proceeds from the term loans issued by these entities will enter the ring-fenced group under Ziggo Group Holding BV (Ba3/stable) via senior secured proceeds loans.

The outlook on all ratings is stable.

Moody’s said the action takes into consideration the cross guarantee and collateral sharing arrangements put in place to ensure a pari passu position of the claims under the existing senior secured debt at Ziggo BV (Ba3/stable) and the new senior secured term loans issued by Ziggo Secured Finance and Ziggo Secured Partnership, respectively.

The transaction is leverage neutral as the proceeds from the new term loans will be used to refinance the €690 million term loan maturing in 2021, which was completed in January 2015 to finance the contribution of UPC Netherlands to Ziggo Group Holding, and part of the €1.95 billion and $2.35 billion term loan due 2022 taken out in 2014 to back Liberty Global's acquisition of the company, the agency said.

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