S&P rates MBCC loan B

S&P said it gave LSF11 Skyscraper Holdco Sarl’s (MBCC) planned €1.11 billion term loan B issue and 3 recovery ratings. The loan is a proposed repricing of MBCC’s €1.585 billion euro- and U.S. dollar-denominated senior secured term loan B. The euro-denominated portion of the loan, which consists of €810 million issued in August and a €300 million add-on in October, will be combined into a single euro-denominated tranche.

“The B and 3 ratings are in line with the ratings on the outstanding euro-denominated loan that will be discontinued,” S&P said in a press release.

Concurrently, MBCC plans to distribute the U.S. dollar-denominated portion of the loan, the equivalent of €475 million, which was previously privately placed. “We are assigning our B issue-level rating and 3 recovery rating to this debt, which is in line with our ratings on the existing debt,” S&P said.

The agency said the repricing will lower MBCC's annual interest expenses and considers it as marginally positive from a credit perspective.

“We understand MBCC is seeking to lower the applicable margin on its TLB, which would reduce its annual interest expenses. We, however, continue to expect leverage will remain high at about 6.5x and EBITDA coverage metrics at about 3x in the next 12 months,” S&P said.

MBCC’s B issuer rating and outlook are unchanged, the agency said.

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