Bulletin: Aernnova's Proposed Upsize And Extension Of Its Term Loan B Is Leverage Neutral

This report does not constitute a rating action. PARIS (S&P Global Ratings) June 11, 2024--S&P Global Ratings thinks that Spain-headquartered aerostructures designer and engineering company Aernnova Aerospace Corp. S.A. 's proposed amendment and extension and up to €25 million upsize of its outstanding term loan B (TLB) will have a broadly neutral impact on leverage, given the company?s good operating performance and anticipated EBITDA growth. Aernnova (B/Stable/--) plans to extend the maturity of the TLB by three years to February 2030. It also plans to upsize the facility by up to €25 million and use the proceeds to repay about €15 million of its revolving credit facility (RCF) and transaction fees of about €8 million. Furthermore, Aernnova is renegotiating a

...June 11, 2024 This report does not constitute a rating action. PARIS (S&P Global Ratings) June 11, 2024--S&P Global Ratings thinks that Spain-headquartered aerostructures designer and engineering company Aernnova Aerospace Corp. S.A.'s proposed amendment and extension and up to 25 million upsize of its outstanding term loan B (TLB) will have a broadly neutral impact on leverage, given the company's good operating performance and anticipated EBITDA growth. Aernnova (B/Stable/--) plans to extend the maturity of the TLB by three years to February 2030. It also plans to upsize the facility by up to 25 million and use the proceeds to repay about 15 million of its revolving credit facility (RCF) and transaction fees of about 8 million. Furthermore, Aernnova is renegotiating a new 100 million RCF maturing in August 2029. Our `B' issue rating and `3' recovery rating (rounded recovery estimate 55%) on the senior secured facility are unchanged. We expect strong demand for air travel combined with...

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