S&P puts Keter at CC

S&P Global Ratings downgraded Keter Group BV to CC on the company’s announced debt restructuring, as ownership was transferred to the group’s senior lenders after a sale process did not result in a transaction that enabled the full redemption of the company’s senior facilities.

The company restructured its capital structure, comprised of a €1.246 billion term loan B, a first-lien revolver for €111 million and a €50 million super senior bridge.

The proposed transaction entails reinstating €725 million of the current first-lien debt into new first-lien debt due in December 2029 and converting the remaining debt of €626 million into a new holdco PIK facility that sits outside the restricted group and is due in December 2029.

The company’s senior secured facilities were downgraded to CC from CCC+.

S&P has a negative outlook and will lower its rating to selective default if the refinancing transaction closes.

The agency expects to lift Keter to B after the transaction closes, though, as the group’s new capital structure will include significantly less interest-bearing debt.

© 2015 Prospect News.
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