S&P assigns BB to Forvia notes

S&P said it rated Forvia SE’s planned €800 million senior unsecured notes BB with a 3 recovery rating. The company intends to sell the notes in two equal tranches with one due 2029 and the other 2031. The 3 recovery rating indicates meaningful recovery (50%-70%; rounded estimate: 50%) in default.

The rating is in line with those on Forvia’s outstanding senior unsecured notes.

“We view the transaction as leverage neutral because Forvia will use the proceeds to repay existing debt, including part of its €1 billion senior unsecured notes due 2025 and part of the €800 million outstanding under its unsecured sustainability-linked bonds due 2026,” S&P said in a statement.

The outlook is stable.

© 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.