Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Matador Bidco > News item |
S&P rates Matador Bidco loan BB-
S&P said it assigned a preliminary BB- credit rating to Matador Bidco and a preliminary BB- issue rating and 3 recovery rating to Matador's €540 million term loan B.
Matador Bidco, formed by private equity sponsor Carlyle, plans to issue a €540 million senior secured term loan B due 2026, the agency said.
The proceeds will be used to acquire a 30% to 40% stake in Compañia Española de Petróleos, SAU, the agency said.
The transaction expected to close by the end of 2019.
The stable outlook reflects an expectation that it will maintain adequate liquidity and receive a steady distribution stream from Cepsa, S&P said.
The agency said it expects the company's debt leverage will be about 5x in 2019 as a result of increased dividend and a cash flow sweep.
The ratings are two notches below the BB+ stand-alone credit profile on Cepsa, S&P said.
The notching differential reflects the structural subordination of the distributions that Matador receives from Cepsa, which it does not fully control, the agency said.
The ratings also consider the differences between Matador's and Cepsa's cash flow stability, corporate governance and financial policy, S&P 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.