Fitch rates Axtel notes B+

Fitch Ratings said it assigned a B+ rating with recovery rating of RR3 to Axtel, SAB de CV’s proposed $150 million reopening of its senior secured notes due 2020.

The proceeds will be used for general corporate purposes, mainly capital expenditure, the agency said.

With the proposed reopening, the 2020 notes will have about $565 million outstanding with $545 million in senior secured notes and the remainder of senior convertible notes, Fitch said.

These notes are secured by first-priority liens on all capital stock of subsidiary guarantors and substantially all assets, the agency said.

The ratings reflect Axtel’s improved liquidity by the successful recapitalization during 2013 through debt exchange and tower sales, which resulted in lower leverage and extended debt maturities, Fitch said.

Axtel’s ratings are tempered by the company’s weak cash generation due to high investment to strengthen its enterprise business and to cope with the intense competitive environment, the agency said.

© 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.