S&P shifts EP Bco view to negative

S&P said it revised the outlook for EP Bco SA to negative from stable but affirmed the BB- ratings on the company and its first-lien debt. The 3 recovery rating is unchanged. S&P also affirmed the B rating and 6 recovery rating on the second-lien term loan.

The negative outlook reflects the company’s growing debt and delayed deleveraging, S&P said. EP Bco plans to secure an incremental €50 million add-on to its term loan B.

Proceeds will be used to finance €40 million of acquisition costs and repay €9 million of €18 million of revolver borrowings.

“We expect that the company’s S&P Global Ratings-adjusted debt to EBITDA post the acquisition will remain close to 7x in 2021, significantly higher than our previous expectations,” 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.