Moody’s rates Allnex loans B1

Moody's Investors Service said it affirmed the B1 corporate family rating and B1-PD probability of default rating of Allnex (Luxembourg) & CY SCA.

Concurrently, the agency affirmed the B1 rating on the €730 million senior secured term loan B (the euro tranche) borrowed by Allnex Sarl, the $698.2 million (€661 million equivalent) senior secured term loan B (dollar-denominated tranches) borrowed by Allnex USA Inc. and the €160 million senior secured revolving credit facility, which is co-borrowed by Allnex Sarl and Allnex USA Inc., two sub-holdings of Allnex.

Moody’s also assigned B1 ratings to the new proposed add-on senior secured €425 million equivalent term loans (split into euro tranche borrowed by Allnex Sarl and dollar tranche borrowed by Allnex USA Inc.), whose terms are anticipated to be in line with those of the existing senior secured term loan B.

The proceeds from the add-on term loan B will be used to pay an extraordinary distribution to the shareholders.

Concurrent with this debt funded distribution, the company is also seeking a re-pricing of its term loan facilities targeting a 100 basis points to 150 bps reduction of the average annual cost across all its euro- and dollar-denominated tranches (including the new add-on senior secured term loan B).

The outlook on all ratings was changed to negative from stable.

© 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.