Fitch rates eircom bond B+

Fitch Ratings said it assigned an expected rating of B+ with a recovery rating of RR3 eircom Finance DAC’s proposed €350 million bond issue.

The proposed issuance matures in 2022 and is issued on a senior secured basis, which ranks pari passu and benefits from the same security package as the group’s €2 billion secured bank facilities.

The proceeds will be used to refinance the group’s existing €350 million 2020 secured notes, which currently pay a coupon of 9¼%, Fitch said.

The pricing of the proposed transaction is expected to result in significant cash interest savings and provide stronger free cash flow over time, although transaction and break fees will have a negative impact in the financial year ending June 2016, the agency said.

© 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.