Moody's rates T-Mobile notes B1, Caa1

Moody's Investors Service said it assigned a B1 rating to the planned €800 million of guaranteed senior secured notes due 2028 to be issued by WP/AP Telecom Holdings IV BV and a Caa1 rating to the proposed €550 million of guaranteed senior unsecured notes due 2029 to be issued by WP/AP Telecom Holdings III BV, (T-Mobile NL).

Concurrently, the agency gave a B1 rating to the €700 million guaranteed senior secured revolving credit facility due 2028 issued by WP/AP Telecom Holdings IV.

“The guaranteed senior secured notes and the guaranteed senior secured RCF are rated B1, one notch above the CFR. This reflects the structural and contractual seniority of this class of debt (together with the term loan). The senior secured debt benefits from guarantees from operating companies as well as a security on shares, intercompany receivables and material bank accounts,” Moody’s said in a press release.

The Caa1 on the unsecured notes reflects its contractual subordination to the senior lender liabilities, including the €2.4 billion guaranteed senior secured term loan B, the €700 million guaranteed senior secured RCF and the €800 million guaranteed senior secured notes, the agency said.

The proceeds will be used to finance the takeover offer of T-Mobile NL by a consortium of private equity funds managed by private equity sponsors Apax Partners and Warburg Pincus LLC.

The outlook is stable.

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