Moody's rates Weather Capital facility B3

Moody's Investors Service said it assigned a B3 rating to the €1.2 billion collateralized loan facility granted to Weather Capital Sarl.

The outlook is stable.

The facility consists of two tranches: Tranche A in the amount of €500 million and Tranche B in the dollar-equivalent amount of €700 million. The tenor of Tranche A is five years (with an option to extend to six years at the borrower's discretion) with a bullet repayment, while Tranche B will be amortized in three equal installments over a five-year period.

The debt service on the loan will depend on future dividend distributions from Orascom Telecom, a holding company whose dividend distribution capacity is linked to dividends upstreamed from its operating subsidiaries. Although Moody's does not rate Orascom Telecom, the rating agency noted that, according to publicly available financial statements, Orascom Telecom has a sizable amount of debt outstanding which it will need to service prior to any dividend distribution.

Weather Capital Sarl is a holding company established under the laws of Luxembourg for the purpose of partially financing the acquisition of Wind Telecomunicazioni S.p.A by Naguib Sawiris, the indirect controlling shareholder of Weather Investments Srl. The core asset of Weather Capital is 50% + 1 GDS in the share capital of Orascom Telecom Holdings SAE.

© 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.