S&P gives BB- to Coral-US loan

S&P said it assigned a BB- issue-level rating on Coral-US Co-Borrower LLC's new $1.125 million secured term loan due 2025.

Coral-US Co-Borrower is a subsidiary Cable & Wireless Communications Ltd. (BB-/negative/B).

The agency said it views the transaction to be debt neutral because Cable & Wireless will use proceeds to repay the existing secured term loan for $1.1 million and pay any fees in connection with the new loan.

The new loan will have several incurrence covenants calculated under a proportionate basis: net leverage ratio of maximum of 5 times and senior secured net leverage ratio maximum of 4 times.

In addition, Sable International Finance Ltd. and Coral-US Co-Borrower are extending the term of their unrated revolving credit facility for $625 million to 2023. S&P said it believes this facility and the new term loan will improve Cable & Wireless’ maturity debt profile and will align its covenants across the main tranches of its institutional debt.

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