S&P rates Caldic Midco, facilities B

S&P said it assigned B ratings to Caldic Midco BV and its senior secured revolving credit facility and first-lien senior secured term loan. The agency assigned a 3 recovery rating to the (recovery rate: 55%) to the revolver and term loan. Additionally, S&P assigned a CCC+ issue rating, with a recovery rating of 6 (recovery rate: 0%), to the second-lien term loan. S&P also assigned a B rating to Cadic Investments BV.

Caldic sold its tank storage and production facilities in Europoort, The Netherlands, at the end of January. The sale will generate cash proceeds of €179 million, and the company intends to use these funds, alongside its cash balance, to repay €87 million of its debt. Caldic also intends to pay a one-time dividend of €115 million to its shareholders.

After the divestment and financing the transaction, Caldic's cash balance will decrease by about €50 million. “We consider this proposed transaction to be aggressive; it will elevate leverage beyond 8x, as measured by S&P Global Ratings, on a pro forma basis for 2019 (excluding divested assets' EBITDA),” said S&P in a press release. The outlook is negative.

© 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.