| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers U > Headlines for Unitymedia KabelBW GmbH > News item |
S&P rates Unitymedia notes B+
Standard & Poor's said it assigned a B+ rating to the proposed €350 million senior secured notes to be issued by Unitymedia Hessen GmbH & Co. KG and Unitymedia NRW GmbH, operating subsidiaries of Unitymedia KabelBW GmbH.
The agency also said it assigned a recovery rating of 3 to the proposed notes, indicating 50% to 70% expected default recovery.
The agency said it placed the BB- ratings on the existing senior secured debt issued by Unitymedia on CreditWatch with negative implications. The recovery rating on the existing senior secured debt remains unchanged at 2, indicating 70% to 90% expected default recovery.
The CreditWatch negative placement signals that on completion of the proposed issuance, the agency said it expects to lower the rating on the existing senior secured debt to B+ and revise downward the recovery rating to 3. This reflects that the increased amount of senior secured debt in the capital structure will reduce the recovery prospects for the existing debt, S&P said.
The proposed notes will rank in line with the existing senior secured debt and Unitymedia will use the proceeds for general corporate purposes and not to repay any outstanding debt, the agency said.
This is what leads S&P to believe there will be an increase in the amount of senior secured debt outstanding by the hypothetical point of default.
The proposed notes are secured and guaranteed obligations similar to the existing notes and bank facilities.
However, there has been some moderate weakening of certain clauses in the documentation to bring it into line with the terms of other similar debt instruments in other financing pools in the Liberty Global Inc. group, the ultimate parent of Unitymedia.
© 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.