S&P rates Bombardier term loan BB

S&P said it assigned its BB issue-level rating and 3 recovery rating to Bombardier Recreational Products Inc.'s (BB/stable/--) proposed US$335 million add-on issuance to the company's existing term loan B.

“Even though the issue-level and recovery ratings are unchanged on the existing term loan, we have revised our recovery estimate on the secured debt to 50% from 55%,” S&P said in a news release.

“The additional debt issuance increases leverage by about 0.5x to about 2.5x on an adjusted debt-to-EBITDA basis for fiscal 2020 compared with our previous expectation of about 2.0x (which is below our downside threshold of 4.0x). As a result, our issuer credit rating on BRP is unchanged because it is unaffected by the proposed debt issuance.”

© 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.