| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Horizon Holdings I > News item |
S&P affirms Verallia on tap issue
S&P said it affirmed the B+ long-term corporate credit rating on Horizon Holdings I, the financial holding company for Verallia.
The agency also said it affirmed the B+ long-term corporate credit rating on Verallia's finance subsidiary, Verallia Packaging SAS, which was formerly known as Horizon Holdings III SAS.
The outlook is stable.
S&P also said it affirmed the B+ rating on the €800 million senior secured notes, which includes the proposed €500 million tap issued by Verallia Packaging and the up to €250 million revolving credit facility and €1.075 billion term loan B.
The recovery rating is 3, indicating 50% to 70% expected default recovery.
S&P also said it affirmed the B- rating on the €225 million senior unsecured notes issued by Horizon Holdings I. This rating is two notches below the corporate credit rating on Horizon Holdings I and reflects a recovery rating of 6, indicating 0 to 10% expected default recovery.
The agency said it expects the documentation of the tap issuance to be fully compatible with the existing notes without changes in definitions, terms, baskets and covenants.
The affirmation follows news that Horizon Holdings I will raise an additional €500 million of senior secured notes and use the funds to repay €262 million of its term loan B and repay €230 million of the share premium contributed to the company.
The transaction will result in an increase of €238 million of debt and weaken credit metrics, S&P said.
But the agency said it thinks the company has the potential to increase earnings in the coming years and also improve credit metrics gradually back to the previous level with an EBITDA toward 5x.
© 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.