S&P rates TechnipFMC notes BB+

S&P said it assigned its BB+ preliminary issue-level rating to TechnipFMC plc’s proposed $850 million senior notes issuance.

The preliminary 3 recovery rating indicates an expectation for meaningful (50%;70%; rounded estimate: 65%) recovery to creditors in the event of a payment default.

The company will use proceeds from the offering to repay existing debt, including commercial paper, in conjunction with the spinoff of its engineering and construction business, Technip Energies, to shareholders. If the spinoff is not consummated on or prior to July 31, 2021, the company must redeem the notes at 100% of the principal amount plus accrued interest.

“We base our preliminary issue-level and recovery ratings on our expected issuer credit rating on TechnipFMC, which we intend to lower to BB+ from BBB+ upon closing of the spinoff of Technip Energies,” S&P said in a news release.

© 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.