EP Bco S.A. Outlook Revised Upward To Stable On Business Resilience; Ratings Affirmed; Proposed Term Loan B Rated 'BB-'

EP Bco S.A., the nonoperating holding company of international port infrastructure operator Euroports Holdings S.a.r.l. (Euroports), is proposing to amend and upsize its senior term loan B (TLB) to up to €500 million, from currently €365 million, and to downsize its subordinated term loan to €70 million, from €105 million. EP Bco will use the proceeds to refinance all existing debt liabilities, including a shareholder loan (FundCo loan) that we used to treat as equity. While the proposed transaction will increase gross senior debt, it will also extend maturities and reduce interest expenses. We expect EP Bco's sustained and robust operating and financial performance will make it fairly easy for the company to compensate for the additional leverage of €100

...December 1, 2023 - EP Bco S.A., the nonoperating holding company of international port infrastructure operator Euroports Holdings S.a.r.l. (Euroports), is proposing to amend and upsize its senior term loan B (TLB) to up to 500 million, from currently 365 million, and to downsize its subordinated term loan to 70 million, from 105 million. EP Bco will use the proceeds to refinance all existing debt liabilities, including a shareholder loan (FundCo loan) that we used to treat as equity. While the proposed transaction will increase gross senior debt, it will also extend maturities and reduce interest expenses. - We expect EP Bco's sustained and robust operating and financial performance will make it fairly easy for the company to compensate for the additional leverage of 100 million. EP Bco benefits from a well-established and diversified port portfolio--with concession periods of, on weighted average, 30 years--and the medium- to long-term fixed contracts that have proven to be sufficiently...

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