Moody’s rates eircom notes B2

Moody's Investors Service said it assigned a provisional B2 rating, with a loss given default assessment of LGD3, to the €500 million senior secured notes due 2022 to be issued by eircom Finance Designated Activity Co. (eircom Finance DAC), formerly eircom Finance Ltd., an indirectly wholly owned subsidiary of eircom Holdings (Ireland) Ltd. (eir).

The senior secured notes, along with the senior bank facilities issued by eircom Finco Sarl, are guaranteed by eircom Holdings and certain subsidiaries.

All other ratings remain unchanged, including the B2 corporate family rating and B2-PD probability of default rating of eircom Holdings and the existing instrument ratings.

The outlook remains positive.

"We have assigned a provisional (P)B2 rating to eir's proposed bond issuance in line with the company's B2-rated outstanding senior credit facility, as the proposed senior secured notes benefit from the same guarantors and are secured with the same collateral," Ivan Palacios, Moody's associate managing director and lead analyst for eircom Holdings, said in a news release.

"This refinancing exercise is credit positive for eir, as the new notes will be used to refinance existing debt at a lower interest rate, thereby improving coverage ratios and covenant headroom, and extending its debt maturity to 2022."

In addition, the company is in the process of raising a €150 million revolving credit facility, which will further strengthen the company's liquidity sources.

© 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.