S&P assigns BB+ to Klabin notes

S&P said it assigned a BB+ issue-level rating to Klabin Finance SA’s proposed $500 million senior unsecured notes due 2027. The 3 recovery rating indicates an expectation for meaningful (65%) recovery in a hypothetical default scenario.

Klabin Finance is the financing vehicle of Klabin SA (BB+/stable/--), which unconditionally and irrevocably guarantees the notes.

Klabin will use the proceeds to finance and refinance eligible green projects.

“Therefore, the proceeds won't significantly affect net leverage, given that the company continues to pay more expensive debt, and will strengthen Klabin's capital structure by extending maturities,” the agency said in a news release.

© 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.