Fitch rates Mulhacen, PIK notes BB-

Fitch Ratings said it assigned Mulhacen Pte. Ltd. an expected long-term issuer default rating of BB- with stable outlook.

At the same time, the agency assigned Mulhacen's €515 million senior secured payment-in-kind toggle notes an expected rating of BB-.

Varde Partners announced the acquisition of the remaining 49% stake in WiZink, which includes plans to issue five-year senior secured PIK toggle notes. Mulhacen is the holding company set up by Varde Partners and will be the issuer of the PIK toggle notes.

“The long-term issuer default rating of Mulhacen is primarily driven by the structural subordination of Mulhacen's creditors to those of WiZink and reliance on dividend being upstreamed from WiZink to service its debt,” Fitch said in a news release.

“On conclusion of the planned acquisition, WiZink will represent Mulhacen's only asset and thus the issuer will not have a material source of income other than dividends from its operating subsidiary.”

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