S&P rates WP/AP Telecom loan B

S&P said it gave preliminary B ratings to WP/AP Telecom Holdings III BV and its planned secured debt. The agency also assigned a CCC+ rating to its planned senior unsecured debt.

WP/AP is the owner of T-Mobile Netherlands (TMNL) and is raising about €3.8 billion in debt to finance a leveraged buyout of the group by Apax Partners and Warburg Pincus from Deutsche Telekom and Tele 2.

“We expect TMNL's S&P Global Ratings-adjusted debt to EBITDA will be about 6.6x in 2021, before dropping to 6x by 2022 and 5.7x by 2023. This will be mainly through TMNL's sustained EBITDA growth and margin improvement, supported by its fixed-mobile convergent strategy and improving customer mix in mobile services, as well as lower restructuring and integration charges in 2022 (mainly coming from Simpel) because indirect costs are expected to remain broadly stable,” the agency said in a press release.

The outlook is stable.

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