Research Update: TK Elevator Topco Affirmed At 'B' On Proposed Amend And Extend; Rating On First-Lien Lowered To 'B'; Outlook Negative

Germany-based TK Elevator Topco GmbH, TK Elevator Group's (TK Elevator) holding company, proposes to upsize its dollar-denominated first-lien term loan B (TLB) equivalent to €2,571 million-€2,660 million, and raise an additional euro-denominated €500 million term loan tranche. These tranches will have debt maturity of April 2030 at the latest. TK Elevator plans to use these proceeds to repay its private dollar- and euro-denominated senior unsecured notes equivalent to €588 million. The transaction is leverage neutral and will likely provide some interest expense savings. We affirmed our 'B' long-term issuer credit rating on TK Elevator. We lowered our issue rating on TK Elevator's first-lien senior secured debt to 'B', and recovery rating to '3' with rounded recovery prospects of 65%, based

...- Germany-based TK Elevator Topco GmbH, TK Elevator Group's (TK Elevator) holding company, proposes to upsize its dollar-denominated first-lien term loan B (TLB) equivalent to 2,571 million-2,660 million, and raise an additional euro-denominated 500 million term loan tranche. These tranches will have debt maturity of April 2030 at the latest. - TK Elevator plans to use these proceeds to repay its private dollar- and euro-denominated senior unsecured notes equivalent to 588 million. - The transaction is leverage neutral and will likely provide some interest expense savings. - We affirmed our 'B' long-term issuer credit rating on TK Elevator. - We lowered our issue rating on TK Elevator's first-lien senior secured debt to 'B', and recovery rating to '3' with rounded recovery prospects of 65%, based on a lower junior debt cushion for the senior secured debt. - The '###+' issue rating on the second-lien senior unsecured debt remains unchanged. The recovery rating remains '6'. - The negative...

Research Update