Perenti Global Ltd.'s Proposed US$350 Million Senior Unsecured Notes Assigned 'BB' Rating

MELBOURNE (S&P Global Ratings) Sept. 21, 2020--S&P Global Ratings today said that it has assigned its 'BB' issue rating to the proposed five-year US$350 million unsecured 144a notes issued by Perenti Finance Pty Ltd., the financing arm of Perenti Global Ltd. (BB/Stable/--). We assigned the notes a recovery rating of '4', reflecting our expectation for average (30%-50%; rounded estimate 45%) recovery prospects in the event of a payment default. The company will use the proceeds, including cash, to redeem Barminco Finance Pty Ltd.'s US$350 million secured notes due 2022, as well as pay transaction costs. As part of the recapitalization, the group's security structure would be consolidated and the existing secured bank facility's committed limits reduced to A$400 million from

...September 20, 2020 MELBOURNE (S&P Global Ratings) Sept. 21, 2020--S&P Global Ratings today said that it has assigned its '##' issue rating to the proposed five-year US$350 million unsecured 144a notes issued by Perenti Finance Pty Ltd., the financing arm of Perenti Global Ltd. (##/Stable/--). We assigned the notes a recovery rating of '4', reflecting our expectation for average (30%-50%; rounded estimate 45%) recovery prospects in the event of a payment default. The company will use the proceeds, including cash, to redeem Barminco Finance Pty Ltd.'s US$350 million secured notes due 2022, as well as pay transaction costs. As part of the recapitalization, the group's security structure would be consolidated and the existing secured bank facility's committed limits reduced to A$400 million from A$530 million. The revised capital structure will provide Perenti with long-dated debt and minimal refinancing risk over the medium term. We view the proposed transaction as broadly credit neutral....

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