Moody’s gives Euskaltel CFR, facility B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B2-PD probability of default rating to Euskaltel, SA and a B1 (LGD3) rating to its €1.4 billion senior bank facility.

The outlook is stable.

The assignment follows the company's acquisition of R Cable y Telecomunicaciones Galicia, SA, the leading cable operator in Galicia (Spain), for an enterprise value of €1.19 billion. In order to fund this deal, the company plans to issue €255 million of new equity, use existing cash on the balance sheet of €35 million and upsize its senior bank facility by €900 million.

"The assigned B1 rating balances Euskaltel's modest scale relative to rated peers and its high initial leverage, against more positive factors such as its solid and entrenched market position in core regions, as well as its strong cash flow generation capacity, which should allow the company to reduce debt quickly," Ivan Palacios, Moody's vice president, senior credit officer and lead analyst for Euskaltel, 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.