S&P lifts Keter Group to B, rates new loan B+

S&P said it raised the ratings on Keter Group to B from SD and assigned the new €728 million term loan B a B+ issue rating, with a recovery rating of 2, indicating substantial recovery prospects of 70%-90% (rounded estimate: 75%).

The outlook is stable.

Keter Group implemented its distressed debt exchange transaction on April 29. The new capital structure reduces the amount of senior secured debt and cash interest burden, and improves the debt maturity profile.

The new capital structure, including capitalized transaction fees, comprises a €728 million term loan B due 2029 and €698 million payment-in-kind notes sitting outside of the restricted group due 2029. Keter also has a €50 million super senior facility maturing in 2026.

“The stable outlook reflects our view that Keter will maintain adjusted leverage including PIK notes of 6.0x-6.5x (3.5x-4.0x excluding PIK notes) and FFO cash interest coverage of 3.0x-4.0x post transaction, while generating stable profitability and positive FOCF, alongside sufficient liquidity to support operations for at least the next 12 months,” S&P said in a news release.

© 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.