Moody's assigns Virgin Media senior notes Baa3

Moody's Investors Service said it assigned a definitive Baa3 rating to the new senior secured notes due 2021 issued in two distinct tranches of £650 million and $500 million by Virgin Media Secured Finance plc, a subsidiary of Virgin Media Inc.

The final terms of the notes are in line with the draft for the proposed notes.

The proceeds will be used for repaying its senior secured term loan A, thereby taking out the scheduled amortization on the loan in 2011 through the end of 2014, Moody's said.

The company will be using further proceeds to repay a significant portion its term loan B due in 2015, Moody's said.

The rating on the notes reflects the fact that the transaction is broadly neutral to net debt and does not change Virgin Media's Ba1 corporate family rating, the agency said.

The agency said the rating also considers the relative ranking of the proposed notes within the company's capital structure as they will rank pari passu with the senior secured bank debt at Virgin Media's subsidiary, Virgin Media Investment Holdings Ltd. and the senior secured notes at Virgin Media Secured Finance plc, each have Baa3 ratings.

© 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.