Moody’s assigns Hema notes B2, Caa2

Moody’s Investors Service said it assigned a Caa2 rating to the €300 million senior secured notes to be issued by HEMA Bondco I BV and a Ca rating to the €120 million pay-in-kind notes to be issued by Helix Holdco SA, a new holding company of Hema. Moody’s also assigned a B2 rating to the proposed €42 million in new money private placement notes to be issued by Hema BV.

The proposed restructuring is expected to result in a reduction in senior secured notes to €300 million from €600 million issued by HEMA Bondco I (depending on the final amount of the restructuring fees) and a complete write-off of the €150 million senior notes issued by HEMA Bondco II BV, the agency said. The transaction will also result in a change of the existing shareholder holding structure with the owners of the senior secured notes becoming the new shareholders of Hema. The senior secured noteholders will also obtain the PIK notes of €120 million.

The new PIK notes will be issued by Helix Holdco, which is outside Hema’s restricted and operating group with no cross-default or other linkages with Hema. They also mature six months after the new senior secured notes.

Hema’s Ca CFR, C-PD/LD probability of default rating and Hema’s ratings remain unchanged because of the upcoming restructuring transaction, which on completion Moody’s will likely consider as a distressed exchange.

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