S&P rates Senvion notes B+

S&P said it affirmed the B+ long-term corporate credit rating on Senvion Holding GmbH.

The outlook is stable.

The agency also said it assigned a B+ rating to the group's proposed €400 million senior secured notes. The recovery rating is 3, indicating 50% to 70% expected default recovery.

S&P said it affirmed the BB ratings on the group's €125 million revolving credit facility with a 1 recovery rating, indicating 90% to 100% expected default recovery.,

The agency also affirmed the B+ ratings on the outstanding €400 million senior secured notes maturing in 2020. The recovery rating on these notes is 3, indicating 50% to 70% expected default recovery.

The rating actions follow Senvion's announced plans to replace its existing €400 senior secured notes by placing new senior secured notes of the same amount, S&P said.

The transaction will not affect Senvion's leverage, but some interest savings of about €10 million each year is expected given the lower interest rate on the new issued senior notes compared to the existing instrument, the agency explained.

S&P also said it understands the interest margin on the revolver will likely be lowered and its maturity extended to 2022.

Once the refinancing is completed, the group's adjusted debt-to-EBITDA ratio will be about 4x in 2017 and trending toward 3.0x to 3.5x in 2018, the agency 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.