Moody’s gives Adria notes B2

Moody's Investors Service said it assigned a B2 rating to Adria Midco BV’s planned €350 million of backed fixed-rate senior secured notes due 2031 and to the €600 million backed floating-rate senior secured notes due 2031 to be issued by United Group BV, a fully owned subsidiary of Adria.

The agency said it also affirmed Adria's B2 long-term corporate family rating, the B2-PD probability of default rating and the B2 rating on the outstanding backed senior secured notes issued by UG.

The proceeds and balance sheet cash will be used to repay the €450 million backed senior secured floating-rate notes due 2026, repay €211 million outstanding under the super senior revolving credit facility, make a €299 million distribution to Summer Bidco BV, Adria's holding company, to repay part of the existing PIK notes issued outside of the restricted group and to cover transaction costs of €17 million.

As part of the deal, the company will issue new €300 million pay-if-you-can PIK notes at the level of Summer Bidco, which along with proceeds from the senior secured notes issuance will be used to repay the €599 million PIK Notes due November 2025 currently outstanding at Summer Bidco. The revolver will also be upsized to around €410 million and its maturity extended.

The outlook remains stable.

© 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.