S&P assigns Consolidated Energy notes B+

S&P said it rated Consolidated Energy Finance SA’s planned eight-year senior unsecured notes for up to $750 million due 2028 B+. The company, a financing subsidiary of Consolidated Energy Ltd., will sell dollar- and euro-denominated notes. The parent, rated B+, and some of its main subsidiaries will guarantee the notes.

The company plans to use the proceeds to refinance debt, including its outstanding $214 million of floating-rate notes due 2022 through a cash tender offer, and its $493 million of senior unsecured notes due 2025. The remaining proceeds of about $43 million will be used for fees, expenses and the call premium for the 2025 notes.

“We consider the transaction as debt neutral given that it won't increase debt to CEL's capital structure,” S&P said in a press release.

The outlook is stable.

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