Research Update: VTG AG Assigned 'BBB' Rating Following Completion Of Debt Financing; Outlook Stable

Germany-headquartered railcar operator, VTG AG (VTG), has completed its debt financing and raised senior secured debt of about €2.1 billion to refinance its existing capital structure. The new financing package comprises of a €550 million 2-year backstop facility, €530 million 5-year term loan, €400 million 7-year term loan, and €665 million term loan facilities. The new capital structure also includes a €150 million revolving credit facility and €150 million capex facility, which are undrawn on transaction close. Proceeds are utilized to repay the majority of VTG's existing debt, including bank loans, USPP, and hybrid capital. We are assigning our 'BBB' issuer credit rating to VTG AG and its financing subsidiary VTG Finance S.A. At the same time, we are assigning

...- Germany-headquartered railcar operator, VTG AG (VTG), has completed its debt financing and raised senior secured debt of about 2.1 billion to refinance its existing capital structure. - The new financing package comprises of a 550 million 2-year backstop facility, 530 million 5-year term loan, 400 million 7-year term loan, and 665 million term loan facilities. The new capital structure also includes a 150 million revolving credit facility and 150 million capex facility, which are undrawn on transaction close. - Proceeds are utilized to repay the majority of VTG's existing debt, including bank loans, USPP, and hybrid capital. - We are assigning our '###' issuer credit rating to VTG AG and its financing subsidiary VTG Finance S.A. At the same time, we are assigning our '###' issue rating to the existing secured 342 million USPP. - The stable outlook incorporates our expectation of high fleet utilization rates and stable lease rates over the next 12-24 months despite weak overall economic...

Research Update