bosmeld
Forumer storico
Il bond Seat upgradato a CCC+, CW positivo, con possibile ulteriore upgrade di 2 notches.
Soprattutto: substantial recovery delle notes (70-90%) in caso di default. Non credo ci sia nessun HY che quoti 65 ed abbia una possibilità di recovery così alta.
*.*.*
S&P Raises SEAT PagineGialle SpA Rtg To CCC From D
(il minimo sindacale)
Overview
-- Italy-based classified directories publisher SEAT PagineGialle SpA
(SEAT) has completed a financial restructuring following the
equitization of EUR1,304 million of subordinated debt, the conversion of EUR65
million of subordinated debt into senior secured bonds, and the refinancing of
its existing senior secured credit facilities.
-- We are therefore raising our long-term corporate credit rating on SEAT
to 'CCC' from 'D' (Default), and placing it on CreditWatch positive.
-- We are also raising our issue rating on SEAT's senior secured notes to
'CCC+' from 'D', and placing it on CreditWatch positive.
-- The CreditWatch placement on the corporate credit rating reflects the
potential for an upgrade of up to two notches following our review of key
elements of the restructuring. These include the new debt documentation, the
group's financial policy and operating strategy, and its earnings and cash
flow prospects.
Rating Action
On Sept. 12, 2012, Standard & Poor's Ratings Services raised its long-term
corporate credit rating on Italy-based classified directory publisher SEAT
PagineGialle SpA (SEAT) to 'CCC' from 'D' (Default).
At the same time, we raised our issue rating on SEAT's EUR750 million senior
secured notes to 'CCC+' from 'D'. The recovery rating on these notes is '2',
indicating our expectation of substantial (70%-90%) recovery prospects in the
event of a payment default.
In addition, we withdrew our 'D' issue and '2' recovery ratings on SEAT's
senior secured credit facilities, including the term loan A, term loan B, and
revolving credit facility (RCF).
Finally, we withdrew our 'D' issue and '5' recovery ratings on the EUR1.3
billion subordinated callable bonds issued by SEAT's affiliate Lighthouse
International Co. S.A.
Rationale
The upgrade reflects our understanding that SEAT has completed its financial
restructuring under which the group has refinanced its existing senior secured
credit facilities with EUR686 million of new senior secured credit facilities
(including a new EUR90 million RCF). Following a merger into SEAT of Lighthouse
International, SEAT has also undertaken a debt-to-equity swap on about EUR1.24
billion of the EUR1.3 billion subordinated bonds and accrued interest of
approximately EUR69 million, in exchange for 88% of the group's voting shares.
The remainder of the subordinated bonds has been converted into EUR65 million of
new senior secured bonds (on the same terms and conditions as the existing
EUR750 million senior secured bonds).
We could raise the corporate credit rating by up to two notches following our
forthcoming review of information on SEAT's future earnings and cash flow
generation capacity, and covenant structure. We will review the new debt
documentation comprehensively and assess the group's financial policy,
operating strategy, earnings, and cash flow prospects. We will also assess the
effect these factors have on our assessment of the group's liquidity and
financial and business risk profiles.
SEAT, like most of its peers, is facing a continued structural decline in the
print directories sector as small and midsize business advertising expands
across a greater number of online marketing channels. The recent financial
restructuring has materially reduced SEAT's leverage and the cost of debt.
However, the long-term viability of the group's new capital structure will
mainly depend on its ability to turn its business round by stabilizing
revenues and profitability.
Liquidity
Before the restructuring, we assessed SEAT's liquidity profile as "weak" under
our criteria. This primarily reflected management's decision to delay any
payments due (both debt amortization and interest) until it had put new
financing agreements in place. We will reassess SEAT's liquidity profile by
the time of the CreditWatch resolution.
Recovery analysis
The issue rating on SEAT's EUR750 million senior secured notes is 'CCC+'. The
recovery rating on these notes is '2', indicating our expectation of
substantial (70%-90%) recovery prospects in the event of a payment default.
We plan to review the issue and recovery ratings on the senior secured notes,
as well as rate the new EUR686 million senior secured credit facilities and
EUR65
million of additional senior secured bonds, by the time of the CreditWatch
resolution. By this time, we will revise our path to hypothetical default and
stressed valuation assumptions.
Following our review, we could equalize the issue ratings on the existing and
new debt with the corporate credit rating on SEAT. SEAT's center of main
interest is Italy, which we consider provides relatively weak protection for
creditors. For the issue ratings to be one notch higher than the corporate
credit rating in this jurisdiction, we require numerical coverage of more than
90%. However, we understand that in the new capital structure, all the
outstanding debt instruments (approximately EUR1.5 billion) rank pari passu,
with no subordinated debt cushion. This could lower numerical coverage and
lead to a possible equalization of the issue ratings with the corporate credit
rating on SEAT.
CreditWatch
We aim to resolve the CreditWatch within the next month, on completion of our
review of the key elements of SEAT's restructuring, such as the new debt
documentation, the group's financial policy and operating strategy, and its
earnings and cash flow prospects. We will also review the effect of these
factors on our assessment of SEAT's business and financial risk profiles. We
believe this review could lead to a possible upgrade of up to two notches.
Related Criteria And Research
All articles listed below are available on RatingsDirect on the Global Credit
Portal, unless otherwise stated.
-- Methodology And Assumptions: Liquidity Descriptors For Global
Corporate Issuers, Sept. 28, 2011
-- Criteria Guidelines For Recovery Ratings On Global Industrial Issuers'
Speculative-Grade Debt, Aug. 10, 2009
-- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded,
May 27, 2009
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
-- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008
Ratings List
Upgraded; CreditWatch/Outlook Action
To From
SEAT PagineGialle SpA
Corporate Credit Rating CCC/Watch Pos/-- D/--/--
SEAT PagineGialle SpA
Senior Secured Debt CCC+/Watch Pos D
Recovery Rating 2 2
Ratings Withdrawn
To From
SEAT PagineGialle SpA
Senior Secured Debt NR D
Recovery Rating NR 2
Lighthouse International Co. S.A.
Subordinated Debt* NR D
Recovery Rating NR 5
*Guaranteed by SEAT PagineGialle SpA.
notizie molto interessanti. per me a fine mese se S&P porta rating a B/B- si ride, penso a 75 ci possa andare.
indi per cui mi sono alzato di prima mattina e mi sono creato una bella posizione su Seat
ci credo molto in Seat
ho preso il grosso a 65, e un lotto in più a 65,5
recovery tra 70 e 90 e prezzo a 65 ? direi NO SENSE
