S&P gives BB to Mahle notes

S&P said it assigned its BB issue-level rating and 3 recovery rating to Mahle GmbH's proposed €400 million senior notes due 2031. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a default.

The proposed notes will rank pari passu with the company’s existing unsecured €1.2 billion revolving credit facility and €300 million European Investment Bank loan.

“However, we anticipate stronger recovery prospects for the holders of the proposed notes, relative to the holders of its existing €750 million unsecured notes and about €250 million of unsecured promissory notes, because they benefit from additional guarantees from certain subsidiaries accounting for about 46% of Mahle’s total EBITDA,” 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.