Research Update: Aragvi Holding International (TransOil) And Proposed Senior Secured Eurobond Rated 'B-(Prelim)'; Outlook Stable

Moldova-based trader and processor of sunflower seeds and grains Aragvi Holding International (TransOil) has announced its intention to refinance its current debt with the issuance of a five-year senior secured Eurobond. Under the proposed capital structure, we expect the group's S&P Global Ratings fully adjusted debt-to-EBITDA ratio will be 2.5x-3.0x, depending on the final funding package, with EBITDA interest coverage at more than 2.5x in the coming two years. We are assigning our preliminary 'B-' ratings to TransOil and its proposed U.S. dollar-denominated senior secured Eurobond issued by Aragvi Finance International DAC. The stable outlook primarily reflects our view that TransOil will post good operating performance, continue deleveraging after the transaction, and maintain an EBITDA interest coverage ratio of more

...+ Moldova-based trader and processor of sunflower seeds and grains Aragvi Holding International (TransOil) has announced its intention to refinance its current debt with the issuance of a five-year senior secured Eurobond. + Under the proposed capital structure, we expect the group's S&P Global Ratings fully adjusted debt-to-EBITDA ratio will be 2.5x-3.0x, depending on the final funding package, with EBITDA interest coverage at more than 2.5x in the coming two years. + We are assigning our preliminary 'B-' ratings to TransOil and its proposed U.S. dollar-denominated senior secured Eurobond issued by Aragvi Finance International DAC. + The stable outlook primarily reflects our view that TransOil will post good operating performance, continue deleveraging after the transaction, and maintain an EBITDA interest coverage ratio of more than 2x in the next 12 months....

Research Update