S&P assigns BB+ to Icahn notes

S&P said it assigned its BB+ issue rating and 3 recovery rating to Icahn Enterprises LP’s proposed senior unsecured notes offering due in 2027. The 3 recovery rating indicates S&P’s expectation for meaningful recovery (65%) in the event of default.

“We are assuming IEP will issue no more than $500 million and that IEP will use the proceeds for general partnership purposes,” said S&P in a press release.

As of Sept. 30, IEP’s loan-to-value (LTV) ratio was near 30%, driven by the company’s cash balance. “The company’s cash balance has been growing during the last 12 to 18 months as a result of realizations and debt issuances. We continue to view the company’s LTV ratio as low relative to historical standards and believe that the long-term leverage is still unclear given the opportunistic nature of the firm,” S&P said.

© 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.