Fitch assigns Oi notes CCC+

Fitch Ratings said it assigned CCC+/RR4 ratings to Oi SA's senior secured debt. In conjunction with this rating action, Fitch gave CCC+/RR4 ratings to the new senior secured notes, of up to $880 million, to be issued by Oi Movel SA. Oi will guarantee the notes on a senior secured basis.

Fitch said it expects that $700 million of proceeds will be used to refinance the company's secured payment-in-kind debenture that matures in January, with the remaining proceeds used for general corporate purposes.

“The new notes improve Oi's financial flexibility in the event that regulatory approval and the closing of the mobile and fiber sales takes longer than expected. They also reduce interest expenses (PIK notes currently pay a 13.67% interest rate) and eliminate the refinancing risk related to the debenture,” the agency said in a press 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.