S&P rates PanAmSat loans BB+

Standard & Poor's assigned a BB+ bank loan rating and a 1 recovery rating to PanAmSat Corp.'s proposed $2.9 billion senior secured credit facilities, which mature beginning in 2009.

The ratings on the existing 6.375% senior secured notes and 6.875% senior secured debentures, which will remain outstanding, were raised to BB+ from BB and a 1 recovery rating was assigned to this senior secured debt.

S&P also assigned a B+ rating to PanAmSat's proposed $1.01 billion senior unsecured notes due 2014.

S&P affirmed its ratings on PanAmSat Corp., including the BB corporate credit rating.

All ratings on the company were removed from CreditWatch, where they were placed with developing implications on April 15, following 80.4% shareholder DIRECTV Group's notice that it was considering strategic alternatives for PanAmSat.

The outlook is stable.

Under new ownership, S&P said the ratings on PanAmSat will reflect financial risk from acquisition-related debt, a likelihood of potential acquisitions, which could limit near-term financial profile improvement and a degree of uncertainty about the company's financial policy under its new owners.

Pro forma debt to trailing-12-month adjusted EBITDA as of March 31 was elevated at roughly 6.3x, but in line with the rating level.

© 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.