S&P affirms upsized Ren10 loan

S&P said it affirmed its B ratings for Ren10 Holding AB and its upsized term loan. At the same time, Renta plans to increase its super senior revolving credit facility by €25 million to €125 million.

Earlier this month, the agency assigned B issue and 4 recovery ratings (30%-50%; rounded estimate: 35%) to the planned €200 million term loan.

Renta plans to upsize its €200 million term loan B to €550 million and use the proceeds to completely repay its €350 million of senior secured notes and €200 million term loan.

“Although the financing is broadly gross debt neutral, Renta Group's debt, as adjusted by S&P Global Ratings, has risen to about €800 million from €758 million in 2022 due to higher leases than we expected in our previous forecast (about €250 million in 2023 versus our previous expectation of about €200 million).

“Because of the full-year effect of previously signed M&A, we expect S&P Global Ratings-adjusted debt to EBITDA will have spiked to around 5x in 2023. Once the full-year accretion of M&A-related revenue and EBITDA is included, we forecast that leverage will trend toward 4x in 2024,” S&P said in a press release.

The outlook is stable.

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