S&P provides B to eircom notes

S&P said it assigned its B issue rating with a 3 recovery rating to the proposed €500 million senior secured notes due 2022 to be issued by eircom Finance Designated Activity Co., a subsidiary of eircom Holdings Ltd.

The company intends to use the proceeds to refinance the existing €350 million senior secured notes and repay a portion of the existing term loan B.

The proposed notes will rank pari passu with the existing senior secured facilities borrowed at the eircom Finco Sarl level, as per the terms of the intercreditor agreement.

Concurrently with the launch of the proposed notes, the company is requesting the consent of the senior secured lenders to add a new €150 million revolving credit facility to the senior facility agreement. The revolver would rank pari passu with the rest of the facilities and notes.

The B issue rating and 3 recovery rating on the existing senior secured facilities borrowed at the eircom Finco Sarl level remains unchanged. The recovery rating is at the lower of the 50%-70% range reflecting the large amount of senior secured debt and the pension deficit.

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