Moody’s: Matterhorn Telecom notes B2, Caa1

Moody's Investors Service said it assigned a B2 (LGD3) rating to the €525 million (equivalent to CHF 562 million) senior secured floating-rate notes of Matterhorn Telecom SA (MT) due 2023 and a Caa1 (LGD6) rating to the €117 million (equivalent to CHF 125 million) senior notes of Matterhorn Telecom Holding SA (MTH) due 2023.

MTH and MT are the ultimate holding company and intermediate holding company of Salt Mobile SA, respectively.

The outlook is negative.

This debt issuance follows the consent solicitation to issue additional CHF 400 million of debt in order to fund part of an extraordinary dividend of CHF 500 million to its 100% owner, NJJ Capital, and the launch of a tender offer for the company's existing €265 million (equivalent to CHF 286 million) senior secured floating-rate notes. The senior unsecured notes will be issued as part of the existing senior secured bonds indenture dated April 23, 2015.

All other ratings and outlooks remain unchanged, including MTH's B2 corporate family rating and B2-PD probability of default rating, as well as the ratings on the debt instruments issued by both companies.

Moody’s said the B2 rating assigned to the senior secured notes reflects their ranking behind the CHF 100 million super senior revolving credit facility but ahead of the senior notes. Because the senior secured notes are the largest piece of debt in the capital structure, their rating is in line with the company's B2 corporate family rating.

The Caa1 rating on the senior unsecured notes reflects Salt's high leverage and their contractually and structurally subordinated position relative to the company's senior secured obligations, the agency added.

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