Moody's: Cableuropa notes B1

Moody's Investors Service said it assigned a definitive rating of B1 (LGD 3, 43%) to the €260 million 8½% senior secured notes due in 2020 issued by Nara Cable Funding II Ltd., a special purpose vehicle that has on-lent the funds to Cableuropa SAU.

All other ratings of the group remain unchanged with a stable outlook.

The proceeds will be used to voluntarily prepay all amortization payments until 2016 due under term loan A of its senior facility, Moody's said.

The notes rank pari passu with the company's existing senior secured facility and senior secured notes. The notes have essentially the same terms and covenant package as the senior secured notes issued by Nara Cable Funding Ltd.

The definitive rating on this debt is in line with the provisional rating assigned Jan. 30, the agency said.

The B1 rating assigned to the notes is one-notch higher than Cableuropa's B2 corporate family rating, reflecting the impact of the presence of junior debt in the company's capital structure, Moody's said.

This junior debt primarily comprises a total of €460 million worth of senior subordinated notes due in 2019 issued by ONO Finance II plc.

This transaction is leverage neutral, the agency said, but has some credit-positive implications, such as the extension of the company's debt maturity profile and the removal of all mandatory debt amortizations until 2016.

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