Fitch rates IHS Netherlands B+

Fitch Ratings said it assigned IHS Netherlands Holdco BV an expected long-term issuer default rating and senior unsecured rating of B+(EXP) and an expected national long-term rating of AA(nga)(EXP).

The outlook is stable.

IHS Netherlands Holdco is issuing a $800 million senior unsecured bond, guaranteed jointly and severally by 100% owned operating subsidiaries, IHS Nigeria Ltd. and IHS Towers NG Ltd. (formerly Helios Towers Nigeria Ltd.). Collectively these companies are the restricted group, owned ultimately by IHS Holding Ltd. (IHS Group), the mobile telecommunications infrastructure company operating around 23,000 towers across Africa.

IHS Nigeria will also enter into a Nigerian naira credit facility of up to $150 million equivalent. IHS Group recently signed a $120 million revolving credit facility, which is guaranteed by the restricted group. These, together with the senior unsecured bond, will be used to refinance all existing debt at IHS Nigeria and IHS Towers as part of a financial transaction to create a new capital structure for the restricted group, including a conditional tender offer for IHS Towers' 2019 notes.

At the same time, Fitch placed IHS Towers' B long-term issuer default rating and senior unsecured rating and A-(nga) national long-term rating on Rating Watch Positive. IHS Towers' ratings may be aligned with the rating of IHS Netherlands Holdco if the transaction is successfully completed as IHS Towers should benefit from being part of the restricted group.

Fitch said the restricted group's senior unsecured notes and NGN credit facility will rank pari passu with any outstanding IHS Towers notes and the guarantee of the IHS Group's revolver, although outstanding IHS Towers notes will only have recourse to IHS Towers. The drawn amount of the RCF will be included in the calculation of the restricted group's credit metrics.

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