Bulletin: Ventia Pty Ltd.'s Proposed Upsize Of Its Existing Term Loan B Facility Has No Impact On Ratings

MELBOURNE (S&P Global Ratings) March 3, 2017--S&P Global Ratings today said that its ratings on Ventia Pty Ltd. (BB+/Stable/--) are not immediately affected by the company's additional A$120 million amount to the existing Term Loan B (TLB) debt, given the company's adherence to its stated financial policy. Ventia is proposing to use the incremental debt for corporate purposes and to pay a distribution to the company's two shareholders. The company is seeking consent from its lenders to the existing TLB to reprice the existing debt and inviting them to participate in taking up this incremental additional loan amount. If the proposed transaction is successful, Ventia's total debt will increase to A$827 million, from about A$707 million at Dec. 31, 2016.

...MELBOURNE (S&P Global Ratings) March 3, 2017--S&P Global Ratings today said that its ratings on Ventia Pty Ltd. (##+/Stable/--) are not immediately affected by the company's additional A$120 million amount to the existing Term Loan B (TLB) debt, given the company's adherence to its stated financial policy. Ventia is proposing to use the incremental debt for corporate purposes and to pay a distribution to the company's two shareholders. The company is seeking consent from its lenders to the existing TLB to reprice the existing debt and inviting them to participate in taking up this incremental additional loan amount. If the proposed transaction is successful, Ventia's total debt will increase to A$827 million, from about A$707 million at Dec. 31, 2016. We expect that this additional leverage can be accommodated within the rating. This is based on our forecast that the company's 2017 adjusted pro-forma debt-to-EBITDA will be about 3.0x and adjusted funds from operations (FFO)-to-debt will...

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