S&P: MEIF 5 Arena notes BB

S&P said it assigned a preliminary BB long-term corporate credit rating to MEIF 5 Arena Holdings, which has committed to acquire Empark Aparcamientos y Services.

The outlook is stable.

S&P also said it assigned a preliminary BB rating to the proposed €475 million senior secured notes due 2023 with a recovery rating of 4, indicating 30% to 50% expected default recovery.

The preliminary rating reflects a view of the strengths of the predominantly concession-based car park business that MEIF 5 Arena Holdings will acquire when it buys Empark, combined with the relatively high amount of proposed debt needed to refinance Empark's existing notes and co-finance the transaction, the agency said.

The rating also assumes the successful execution of the acquisition and of the placement on the market of the proposed €475 senior secured notes and £75 million revolving credit facility at the maturity and interest rate conditions, S&P said.

The new corporate structure is not expected to interfere with Empark's ability to maintain its market leadership in the Iberian Peninsula, the agency said.

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