Fitch Ratings has assigned issuer and expected issue level ratings related to Burger King Worldwide’s proposed acquisition of Tim Hortons. The debt is being issued by 1011778 B.C. Unlimited Liability Company (NewCo), a new legal entity created to effect the transaction. Ratings, which are based on Fitch’s expectations regarding final terms and conditions, are as follows:
NewCo (Canadian borrower and U.S. co-borrower)
- Long-term Issuer Default Rating (IDR) B/Outlook Stable;
- Senior secured revolver BB/RR1;
- Senior secured term B loan BB/RR1;
- Senior secured second lien notes B/RR4.
Fitch maintains the Rating Watch Negative on Burger King and its subsidiaries. The ratings were placed on Negative Watch on Aug. 27, 2014 following the firm’s definitive agreement to acquire Tim Hortons. Resolution of the Negative Watch will occur upon transaction closing or more certainty regarding the amount and timing of repayment of Burger King’s existing debt. A list of Burger King’s current ratings is at the end of this release.
To read the entire press release, click here.
Previously on abfjournal: Burger King Markets $7.25B Loan Package for Tim Hortons Buy, September 15, 2014