S&P rates Q-Park Holding I notes BB-

S&P said it assigned BB- ratings to Q-Park Holding I BV and its proposed €1.455 billion of senior secured notes. S&P also assigned the notes a recovery rating of 3. Proceeds will be used mainly to refinance debt.

Q-Park is planning to sell €1.455 billion of senior secured notes, in a combination of fixed and floating rates with five-, six-, and seven-year maturities, to refinance its capital structure.

“We anticipate the transaction will not increase the company’s already high financial leverage, since Q-Park intends to use the issuance proceeds to repay €1.394 billion existing debt, fund a €40 million distribution to shareholders in the form of a shareholder loan repayment and pay related transaction expenses,” said S&P in a press release. KKR Infrastructure is the company’s majority shareholder.

The outlook is stable, which mirrors S&P’s view that Q-Park will maintain its solid competitive position in Europe while maintaining high financial leverage, reflected by adjusted debt to EBITDA of 8.5x-9x and adjusted funds from operations (FFO) to debt of 6.5%-7% on average over the next three years.

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