S&P rates WFS Global notes B, notes CCC+

Standard & Poor's affirmed its B long-term corporate credit rating on WFS Global Holding SAS. The outlook is stable.

At the same time, S&P assigned its B issue rating to the proposed €90 million add-on of senior secured notes due 2022 to be issued by WFS. The recovery rating on the notes is 3, indicating the agency’s expectation of recovery prospects in the lower half of the 50%-70% range in the event of a payment default.

S&P also affirmed its B rating on the existing €225 million notes due 2022, and revised the recovery rating on the notes to 3 from 4. Recovery prospects are in the lower half of the 50%-70% range.

S&P also assigned its CCC+ issue rating to the proposed €150 million senior notes due 2022 to be issued by WFS. The recovery rating on the notes is 6. The agency’s recovery prospects are in the lower half of the 0%-10% range.

The affirmation follows WFS' announcement that it plans to raise a €90 million add-on of senior secured notes and €150 million of new senior notes to fund the $319 million (about €294 million) acquisition of Consolidated Aviation Services (CAS). Private equity owner Platinum Equity will also invest €78.6 million of equity to fund the transaction.

While S&P understands that WFS and CAS have signed a sale and purchase agreement, the transaction is subject to regulatory approval and other customary closing conditions.

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