Moody’s assigns Ba2 to SELP bonds

Moody's Investors Service said it assigned a Baa2 rating to the planned €500 million bond issuance by Segro European Logistics Partnership Sarl (SELP).

The Baa2 long-term issuer rating and stable outlook are unchanged.

SELP Finance Sarl will issue the planned bond that will be guaranteed by SELP and will rank pari passu with other senior unsecured obligations.

Proceeds will repay a €200 million secured lending facility, around €120 million of drawings under the revolving credit facility, with the remainder used for acquisitions, capital expenditure, and general corporate purposes.

"The planned €500 million bond issuance is credit positive because SELP will use the proceeds to improve financial flexibility by (1) increasing unencumbered assets following repayment of secured facilities (2) providing more capacity under the €200 million revolving credit facility and (3) lengthening the debt maturity profile," Ramzi Kattan, Moody's vice president and lead analyst for SELP, said in a news release.

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