S&P rates Vue International loans B

S&P said it assigned its B issue-level and 3 recovery ratings to Vue International Bidco's proposed £65 million equivalent senior secured revolving credit facility due in 2024.

S&P also assigned a B issue rating and 3 recovery rating to the proposed senior secured term loan due in 2025, which includes the £300 million tranche, €480 million tranche and €114 million delayed-draw tranche. The 3 recovery ratings indicate an expectation of meaningful recovery (50%-70%; rounded estimate: 55%) of principal in the event of a payment default.

Vue will use the proceeds from the euro- and sterling-denominated tranches of the term loans to refinance its existing £730 million equivalent senior secured term loan and senior secured floating- and fixed-rate notes. It will use the €114 million tranche to finance the acquisition of CineStar, which will complete when the company receives regulatory approval from the German competition authorities in 2019.

“The rating on Vue continues to reflect the group's high leverage, with S&P Global Ratings-adjusted debt to EBITDA of about 10x in the financial year ending November 2018, exposure to highly competitive and mature markets in the U.K. and Germany, and potential volatility in operating performance and financial metrics inherent for the cinema exhibition business,” S&P said in a news release.

“The group's leading market positions, improving geographic diversity and adequate liquidity support the rating.”

© 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.