Moody’s rates Lorca loans B1

Moody’s Investors Service said it assigned B1 ratings to Lorca Finco plc’s planned €1,500 million senior secured term loan B due in 2027 and the €500 million senior secured revolving credit facility due in 2027.

The issuer is a subsidiary of Lorca Holdco Ltd., which was created to acquire Masmovil Ibercom SA by a group of private equity funds. Moody’s assigned a B1 corporate family and B1-PD probability of default rating to Lorca.

“The B1 rating reflects Masmovil’s new private equity ownership and more aggressive capital structure, which will lead to an increase in leverage to 5.6x in 2020 from 4.4x in 2019. However, we expect that the company’s credit metrics will improve from 2021 onwards, driven by sustained revenue growth, significant margin improvement linked to the recently signed network related contracts, and higher cash flow generation, keeping the ratios well within the guidance range for the B1 category,” said Carlos Winzer, a Moody’s senior vice president, and lead analyst for Masmovil, in a press release.

Concurrently, Moody’s withdrew Masmovil’s B1 CFR and B1-PD PDR. The B1 ratings on Masmovil Holdphone SAU’s €1,450 million senior secured term loan B, €100 million senior secured revolving credit facility and €150 million senior secured facilities remain unchanged because they will be redeemed, upon closing of the acquisition, the agency said.

Moody’s said it expects to withdraw the ratings on the loans upon repayment.

The outlook is 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.