S&P gives Perenti notes BB

S&P said it assigned its BB issue rating to the proposed five-year $350 million of unsecured 144a notes issued by Perenti Finance Pty Ltd., the financing arm of Perenti Global Ltd. The agency assigned the notes a recovery rating of 4, reflecting expectations for average (30%-50%; rounded estimate 45%) recovery prospects in the event of a payment default.

The company will use the proceeds, including cash, to redeem Barminco Finance Pty Ltd.'s $350 million of secured notes due 2022, as well as pay transaction costs.

“As part of the recapitalization, the group's security structure would be consolidated, and the existing secured bank facility's committed limits reduced to A$400 million from A$530 million. The revised capital structure will provide Perenti with long-dated debt and minimal refinancing risk over the medium term,” S&P said in a press release.

The agency said it sees the proposed transaction as broadly credit neutral.

© 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.