S&P rates Interxion tap BB-

Standard & Poor’s said it assigned a BB- rating to the proposed €150 million tap to be issued by Interxion Holding NV.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

The proceeds will be used for capital expenditures relating to the expansion of existing and new data centers, S&P said, as well as for general corporate purposes.

The agency also said it affirmed the BB+ rating on the company’s revolving credit facility and BB- rating on the company’s existing €475 million senior secured notes due 2020.

The recovery ratings are 1 and 3, respectively.

The recovery prospects for noteholders remain constrained by the €100 million super senior revolving credit facility, which ranks ahead of the notes in terms of enforcement proceeds in a default scenario, S&P explained.

The agency said its hypothetical scenario envisages a default in 2020, triggered by oversupply in the co-location industry, leading to pricing constraints.

Interxion is valued as a going concern given its leading market position in Europe’s key Internet hubs, S&P added, and its valuable long-term relationships and contracts with a diversified and established customer base.

© 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.