Moody's rates Iesy notes Caa1

Moody's Investors Service said it assigned a provisional rating of prospective Caa1 to the proposed €525 million issuance of senior notes due 2015 to be launched by Iesy Repository GmbH.

The company's B2 senior implied rating, the Caa2 senior unsecured issuer rating and the Caa1 rating on the existing €215 million issue of senior subordinated notes have been affirmed. The outlook is stable.

Iesy currently plans to issue €525.0 million in senior subordinated notes due 2015 as a part of the new financing package, which also includes up to €820 million of senior secured bank facilities to finance the acquisition of a cable operator Kabelnetz NRW Holdco GmbH.

Following the notes issuance, the proceeds will be deposited to the escrow account and will be released to finance the acquisition subject to certain conditions. In the event that the acquisition does not consummate on or prior to July 31, the notes will be subject to the mandatory redemption.

Moody's notes that iesy's acquisition of ish is in line with the company's strategy to benefit from consolidation opportunities in the fragmented German cable market.

Furthermore, the rating agency said it believes that iesy-ish group is well positioned to achieve operating synergies going forwards as well as to benefit from the group's larger scale in offering new products such as internet and telephony services.

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