Fitch rates new debt on Picard

Fitch Ratings said it assigned an expected rating of B+ to Picard Groupe SAS's planned six-year €1.19 billion senior secured floating-rate notes with a recovery rating of RR3 as part of the group's announced refinancing and dividend recapitalization.

The agency also said it assigned a BB- with recovery rating of RR2 to Picard's planned €30 million 5.5-year revolving credit facility and expected CCC+ with recovery rating of RR6 to Picard Bondco SA's planned seven-year €310 million senior notes.

The new senior secured notes and senior notes will repay the €428 million senior secured notes currently outstanding at the same entity, the outstanding €722 million senior notes issued at Picard Bondco's level and the €232 million payment-in-kind notes issued at Picard PIKco SA's level.

Together with existing cash on balance sheet, the proceeds will also be used to pay €110 million dividends to the shareholders, Fitch said.

The new revolver will replace the existing one for the same amount and will be issued by the same entity, the agency noted.

Although Fitch said it believes Picard's de-leveraging pace should not be significantly affected by the new capital structure, the higher debt levels as a result of re-leveraging will result in higher refinancing risk.

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