S&P rates Mulhacen, PIK notes B+

S&P said it assigned its B+/B long- and short-term issuer credit ratings to Mulhacen Pte. Ltd. The outlook is stable.

The agency also assigned its B+ issue rating to the €515 million senior secured payment-in-kind toggle notes due in 2023 to be issued by Mulhacen.

Varde Partners announced the acquisition of the remaining 49% stake in WiZink that it did not own from Banco Popular Espanol SA.

The acquisition will be partly financed with the PIK toggle notes.

The issue rating of B+ on the notes is at the same level as the long-term issuer credit ratings on the issuer, given the notes' status as senior obligations, S&P said.

The agency said the PIK feature does not lead it to rate the instrument lower than the issuer credit ratings because if Mulhacen were to pay in kind rather than in cash on an interest payment date, S&P would not see it as a breach of an imputed promise, and therefore the agency considers the likelihood of repayment of the original principal and PIK interest as similar to the likelihood of the issuer repaying its other obligations.

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