Research Update: Spain-Based KronosNet Affirmed At 'B+' On Term Loan B Liquidity Support; Outlook Negative

KronosNet Topco S.L. (KronosNet) has issued an additional €70 million to its existing €800 million term loan B (TLB) to repay roughly €50 million under its partially drawn €200 million revolving credit facility (RCF) as well as roughly €20 million of local bank lines in Colombia. The transaction does not affect leverage and restores roughly €50 million of additional capacity under the RCF, bringing total availability to €87.5 million after transaction close. We therefore revised our liquidity assessment to adequate from less than adequate. We affirmed our 'B+' ratings on KronosNet and its subsidiary, KronosNet CX Bidco 2022 S.L., as well as on the group's senior secured €870 million TLB (including the add on); the recovery rating on the debt

...- KronosNet Topco S.L. (KronosNet) has issued an additional 70 million to its existing 800 million term loan B (TLB) to repay roughly 50 million under its partially drawn 200 million revolving credit facility (RCF) as well as roughly 20 million of local bank lines in Colombia. - The transaction does not affect leverage and restores roughly 50 million of additional capacity under the RCF, bringing total availability to 87.5 million after transaction close. We therefore revised our liquidity assessment to adequate from less than adequate. - We affirmed our 'B+' ratings on KronosNet and its subsidiary, KronosNet CX Bidco 2022 S.L., as well as on the group's senior secured 870 million TLB (including the add on); the recovery rating on the debt remains '3', indicating our expectation of about 50% recovery in the event of default. - The negative outlook indicates the likelihood of a downgrade if KronosNet does not deleverage below 5x and improve its free operating cash flow (FOCF) by year-end...

Research Update