S&P gives Nuuday B-, loan B

S&P said it preliminarily assigned Nuuday A/S’ planned €500 million term loan B issue and 2 recovery ratings. The agency also preliminary gave Nuuday a B- issuer rating with a stable outlook.

Nuuday will transfer €380 million of the proceeds to its parent TDC Holding, a subsidiary of DKT Holdings ApS. The rest will be kept on the balance sheet.

“We assess Nuuday's business risk profile as weaker than that of the DKT group. Our assessment of Nuuday's business risk profile is constrained by the company's reliance on agreements with telecom infrastructure owners, a decline in legacy copper cable revenue, unfavorable structural changes in the TV and landline market, limited scale, geographic concentration, and relatively low profitability. These constraints are partly offset by Nuuday's leading market position, long-term agreement with TDC Net in mobile, strong and wide portfolio of brands, and unique position as the only company with a quadruple-play strategy in Denmark,” S&P said in a press release.

The outlook reflects an expectation that Nuuday's revenue and EBITDA will be relatively flat in the next 12 months and its adjusted leverage ratio at about 4.8x, the agency said.

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