Fitch rates WOM notes BB-

Fitch Ratings said it assigned a rating of BB- to WOM SA’s proposed $300 million-$450 million unsecured notes. The notes will be issued out of Kenbourne Invest SA, a financing vehicle incorporated in Luxembourg that issued the group’s unsecured $510 million 6 7/8% notes due 2024.

WOM and its parent companies, including WOM Holdings SpA, among other corporate structure entities will guarantee the notes.

Proceeds will be primarily used to purchase mobile spectrum, to refinance the company’s CLP 120 billion term loan due 2024 and for general corporate purposes.

“Fitch expects that, as a result of the transaction, net debt/EBITDA will temporarily exceed the negative sensitivity of 4x in 2021, before declining to 3.5x-4x by YE 2022. Inability to delever, due to competitive pressures or shareholder distributions, would be negative for the ratings,” Fitch said in a press release.

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