S&P rates O1 Properties notes B+

S&P said it assigned a B+ rating to the dollar-denominated senior unsecured notes issued by O1 Properties Finance.

The notes will be guaranteed by parent company O1 Properties Ltd., which fully owns O1 Properties Finance.

The agency said it will equalize the rating with the company’s B+ long-term corporate credit rating.

The recovery prospects for the notes will exceed 30% despite a significant amount of secured debt at O1's operating companies, the agency explained.

The company owns a large portfolio of prime assets in the center of Moscow and, even after a 30% haircut, the portfolio's residual value is enough to support recovery prospects of more than 30% for the noteholders, S&P said.

The proceeds will be used mainly to refinance O1's secured debt, the agency said.

The company's liquidity also is expected to improve after this issuance since headroom under the existing covenants on the secured debt will increase after the transaction, 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.