Moody's upgrades Garfunkelux

Moody's Investors Service said it upgraded Garfunkelux Holdco 2 SA's corporate family rating to B2 from B3 and upgraded the local- and foreign-currency ratings assigned to the senior secured notes issued by Garfunkelux Holdco 3 SA to B2 from B3. The outlook is stable.

The ugprades follow Garfunkelux's announcement about its capital restructuring. The restructuring includes a £600 million capital contribution. Most of the proceeds will be applied to partial repayment of senior debt, Moody’s said.

Garfunkelux's new senior secured notes issuance in the aggregate amount of £1.613 billion (equivalent) will replace the company's senior secured notes, which amounted to £1.87 billion (equivalent) as of June 30. Also, the company will fully redeem its £197 million of senior unsecured notes due 2023 and partially repay drawings under its revolving credit facility.

The Caa2 foreign-currency rating of the senior unsecured notes issued by Garfunkelux Holdco 2 was unaffected by this action, as they will be fully repaid in the planned transaction, Moody’s said.

© 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.