Norcell, the holding company of Swedish cableco Com Hem, plans to issue €250m PIK notes which mature in 2019.
Com Hem was acquired by PE firm BC Partners last year in a highly leveraged deal. The debt package for the transaction had to be rearranged…
Norcell, the holding company of Swedish cableco Com Hem, plans to issue €250m PIK notes which mature in 2019.
Com Hem was acquired by PE firm BC Partners last year in a highly leveraged deal. The debt package for the transaction had to be rearranged twice due to market conditions, which made it difficult to place the loans and bonds.
Part of the proceeds from the latest bond issue will repay an outstanding SEK1.58bn (€191.4m) PIK loan.
Moody’s today assigned a provisional (P)Caa2 rating and Standard & Poor’s gave a ‘CCC+’ issue rating to the PIK notes.
Both rating agencies gave the new PIK notes a lower rating than previous debt issues from Norcell.
“We consider the proposed PIK notes to have a weaker position and weaker potential recovery than the existing senior unsecured notes as they are structurally and contractually subordinated to the existing senior unsecured notes,” said Standard & Poor’s.
