Fitch cuts, pulls Mulhacen ratings

Fitch Ratings said it downgraded Mulhacen Pte Ltd.'s long-term issuer default rating to RD from C and withdrew the ratings.

The downgrade follows the completion of an exchange offer the agency said it considers a distressed debt exchange. Mulhacen's €515 million of senior secured payment-in-kind toggle notes were affirmed at C, before being withdrawn.

Mulhacen was created by Varde Partners to acquire WiZink Bank. The deal involved a write-down of its PIK toggle notes by 45%, an increase in the coupon to 8% from 6½% in cash or 7¼ if PIK and the extension of their maturity to December 2026 from August 2023. Following the exchange offer, bondholders hold a 40% equity stake in Mulhacen's parent company, Teide Pte. Mulhacen also set up a new, unrated €285.6 million first-lien facility to recapitalize WiZink.

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