S&P rates Lorca, loan B+

S&P said it assigned preliminary B+ ratings to Lorca Telecom Bidco SAU and its planned €1.5 billion senior secured term loan B, issued by Lorca Finco plc. The loan’s preliminary recovery ratings is 3 (50%-70%; rounded estimate: 50%).

Proceeds will be used to help finance the acquisition of MasMovil.

The outlook is stable. “The stable outlook indicates we expect MasMovil to continue quickly increasing revenues and EBITDA margin in the coming years, allowing the group to reduce adjusted debt to EBITDA to 4.5x-4.6x in 2021 from around 6x in 2020, while free operating cash flow (FOCF) should break even in 2021,” S&P said in a press release.

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