S&P affirms Foncia

S&P said it affirmed its B long-term issuer credit rating on Foncia Management. The outlook is stable.

At the same time, S&P affirmed its B issue rating on Foncia's senior secured debt.

Foncia plans to raise €80 million of senior debt, as an add-on to its outstanding term loan B, to refinance a portion of its more costly second-lien debt.

At the same time, Foncia’s existing second-lien facility is being repriced.

The transaction is expected to close by the end of July.

“In our view, this will have no effect on the amount of debt outstanding, but it should reduce the company's overall cost of debt. We expect the refinancing will translate into an improved FFO-cash-interest coverage ratio exceeding 4.0x from 2018,” S&P said in a news release.

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