S&P puts Ellaktor on developing watch

S&P said it placed its CCC+ ratings for Ellaktor SA and Ellaktor Value plc’s senior unsecured debt on CreditWatch with developing implications.

Ellaktor offered to buy back its €670 million of senior unsecured notes maturing 2024, at 101% of the principal amount, prompted by a change of control by the framework agreement contracted on May 6, between its largest shareholders Reggeborgh and Motor Oil Corinth Refineries SA.

A backstop facility intended to be repaid by the planned sale of the majority of Ellaktor's renewable energy sources (RES) division to Motor Oil, with expected cash proceeds of about €683 million, in a deal that may enable the company to repay the notes ahead of 2024, the agency said.

“Nevertheless, we lack clarity on the group's strategy and plans for its capital structure following the RES disposal, and we do not know if the group will maintain sufficient liquidity in the remaining businesses, particularly the construction segment,” S&P said in a press release.

The developing watch indicates a possible upgrade, downgrade or affirmation of ratings within 90 days “depending on Ellaktor’s strategy and capital structure as the disposal of the RES business progresses, as well as on our view of the impact of the disposal on the group's liquidity position and the group's management of cash flow from its construction business,” the agency explained.

© 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.