Moody’s assigns Iceland Bondco notes B3

Moody’s Investors Service said it assigned a B3 rating to Iceland Bondco plc’s planned £475 million (equivalent) backed senior secured notes due 2027 and changed its outlook to positive from stable.

The agency concurrently affirmed Iceland VLNCo Ltd.'s (Iceland) ratings, including the B3 corporate family rating, B3-PD probability of default rating and affirmed Iceland Bondco's existing B3 backed senior secured ratings.

The notes will be used for a tender offer for £500 million of the outstanding £550 million 4 5/8% secured notes due March 2025. While £25 million of the outstanding notes will be repaid upon completion of the planned transaction through available cash, a £50 million stub will be redeemed at maturity.

“The positive outlook reflects the positive trajectory of the company's key debt metrics over the next 12-18 months, with leverage expected to reduce towards 4.5x and interest coverage improving towards 1.5x,” Moody’s said in a press release.

© 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.