S&P rates Marlink loan B

S&P said it assigned its preliminary B long-term issuer credit ratings to Toruk AS (Marlink). The outlook is stable.

At the same time, S&P said it assigned a preliminary B issue rating to the proposed €280 million first-lien term loan B and the $190 million first-lien term loan B that will be borrowed by Toruk AS, Marlink AS, and Marlink Holding SAS. The preliminary recovery rating is 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default.

The rating is constrained by the group's reported negative free operating cash flow (FOCF). Marlink is investing in enlarging its installed base of very small aperture terminal (VSAT) antennas, the agency said.

S&P noted the negative FOCF this year and the high S&P-adjusted debt to EBITDA at about 7.0x at closing are mitigated by S&P’s forecast of steady EBITDA growth as the investment in VSAT pays off.

© 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.