Fitch rates Pershing Square notes BBB

Fitch Ratings said it assigned final ratings of BBB to Pershing Square Holdings Ltd.'s offering of €500 million of senior unsecured notes due 2027 and $700 million of senior unsecured notes due 2031.

“The senior unsecured debt rating is equalized with PSH's issuer default rating (IDR) and reflects the lack of senior secured debt and the availability of meaningful unencumbered asset coverage. The ratings also reflect that the unsecured note issuances rank equally with PSH's existing bonds. Although approximately $630 million of PSH's 2022 bonds will likely remain outstanding until they mature in July of next year, Fitch views the issuances as a pre-funding of existing debt,” the agency said in a press release.

The proceeds are expected to be used to fund PSH's tender offer for its $1 billion of unsecured notes maturing in July 2022 and for general corporate purposes. PSH reported that roughly $370 million, or 37%, of the 2022 bonds accepted the tender offer and would be redeemed on Monday.

The outlook is stable.

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