S&P rates Voyage Digital, loan B+

S&P said it assigned preliminary B+ ratings to Voyage Digital (NZ) Ltd. and its planned U.S. dollar-denominated senior secured term loan.

Voyage Digital is positioned to become the third-largest integrated telecommunications company in New Zealand, if it can integrate Two Degrees Group Ltd. (2degrees) and Orcon Holdings Ltd. “Weighing on the company's credit quality is its smaller scale than local and global peers, its moderate market share and a leveraged capital structure,” S&P said in a press release.

The company plans to use the term loan for the merger.

S&P assigned a stable outlook and said it forecasts Voyage Digital’s debt-to-EBITDA ratio to be above 5x on an annualized basis when the company is established, before declining below 5x from fiscal 2023, which ends June 30.

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