S&P assigns Tereos notes BB-

S&P said it assigned its BB- rating to the planned €300 million of senior unsecured notes due 2028 to be issued by Tereos Finance Groupe I, a group financing vehicle of Tereos SCA. The recovery rating on the notes is 4, reflecting average recovery prospects (30%-50%; rounded estimate: 45%), constrained by the large amount of debt held by local subsidiaries and the unsecured nature of the instrument.

The ratings are the same as S&P’s on Tereos’ outstanding senior unsecured debt.

The company will mostly use the proceeds to repay the €313 million of outstanding senior notes maturing in June 2023.

“We view positively that this transaction will improve Tereos' liquidity position and debt maturity profile, although we factor higher interest costs compared to the previous senior notes issuance in January 2022 due to less favorable global financing conditions,” S&P said in a press release.

The outlook is stable.

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