Fitch rates Lorca Telecom notes BB

Fitch Ratings said it gave Lorca Telecom Bondco, SAU’s senior secured notes of €720 million, an expected rating of BB/RR2/73%. The issuer is a subsidiary of Lorca Holdco Ltd., which is the investment vehicle of a private equity sponsor consortium bidding for Masmovil Ibercom SA. Spain’s securities regulator CNMV approved the bid on July 29.

The notes will benefit from the same collateral and guarantee package and rank pari passu with Lorca Holdco’s term loan B, which was upsized to €2.2 billion in August and is rated an expected BB/RR2, Fitch said.

The amount of notes, together with the upsized term loan B, is in line with Fitch’s forecast for the assumed capital structure of €3 billion secured debt to finance the acquisition and refinance Masmovil’s debt in full, the agency said.

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