S&P affirms United on acquisition news

S&P said it affirmed the B issuer credit rating on United Group and B ratings on its existing senior secured notes.

The agency also said it affirmed the B- rating on the €306 million payment-in-kind notes.

United Group announced its intention to acquire Tele2's mobile business for an enterprise value of €220 million, S&P said.

The transaction will be funded with a €200 million increase of the existing senior secured notes due 2024, the agency said.

S&P said it expects that United Group's metrics will remain broadly unchanged pro forma the acquisition with an adjusted leverage of about 7x in 2019.

The stable outlook reflects a view that United Group will continue to benefit from strong organic revenue growth of more than 10% and successfully manage the Tele2 Croatia operations, the agency said.

© 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.