S&P puts Equiniti on positive watch

Standard & Poor’s said it placed on CreditWatch with positive implications the B long-term corporate credit rating on Equiniti Cleanco Ltd., a subsidiary of Equiniti Group Ltd.

The agency also said it affirmed the B issue rating on Equiniti’s senior secured debt.

The CreditWatch placement follows news of Equiniti’s recently announced initial public offering, which could meaningfully improve its financial risk profile, S&P said.

As part of this transaction, the company plans to raise gross proceeds of about £390 million, which it will primarily use to repay bond loans and mezzanine debt, the agency said.

The company is expected to articulate a new capital structure that would allow for a significant reduction in leverage if the transaction is completed, S&P said.

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