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      Optimum Solar Kft. ratings monitored after terms of proposed bond updated
      FRIDAY, 08/05/2020 - Scope Ratings GmbH
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      Optimum Solar Kft. ratings monitored after terms of proposed bond updated

      The amended bond terms, which relate to amortisation and the use of proceeds, have no rating impact.

      The latest information on the rating, including rating reports and related methodologies, is available on this LINK.

      Implications

      Scope Ratings has a B+/Stable corporate issuer rating on Optimum Solar. The senior unsecured rating is B+.

      Scope has performed a monitoring review on the credit rating of Optimum Solar Kft. after receiving updated terms on the proposed bond to be issued under the MNB Bond Funding for Growth Scheme. Instead of issuing a HUF 6bn bullet bond maturing in seven years, the company intends to issue an amortising bond, with an amortising schedule of 5% repayment after three years, 15% after five years, 20% after six years, and the remaining 60% as a balloon payment at maturity. The use of proceeds was also amended to reflect a larger portion of working capital financing at the expense of a planned expansion of its Baja headquarters, which will instead be leased if capacity constraints arise from the growing business. Bond proceeds are intended for capital expenditure (HUF 800m instead of HUF 1.65bn), deposits needed as security for bank guarantees, the redemption of performance guarantees and warranties (remains at HUF 1.5bn), and working capital financing (HUF 3.7bn instead of HUF 2.85bn).

      The proposed amendments on bond terms have no material impact on the ratings assigned on 4 February 2020 and Scope Ratings has therefore left all ratings unchanged.

      This publication does not constitute a credit rating action. To download the updated report please click here.
       

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