Fitch gives Puma Energy bond BB-

Fitch Ratings said it assigned Puma International Financing SA’s planned five-year bond an expected senior unsecured rating of BB-. “The expected rating is aligned with its other senior unsecured instruments,” Fitch said in a press release.

Puma International Financing is wholly-owned by Puma Energy Holdings Pte. Ltd., which will guarantee the notes. “As per Fitch’s criteria, prior-ranking debt at the operating companies’ level is below 2x-2.5x EBITDA and thus not sufficiently material to affect the bond rating. The transaction will improve Puma Energy’s debt maturity profile,” Fitch said.

The proceeds and the proceeds from the sale of its Australia fuels business will be used to repay the outstanding term loan B, which as of Aug. 20, had $650 million outstanding.

Fitch said it considers the bond offering leverage neutral because the proceeds will be used to repay debt.

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