Moody's assigns B2 to Thevelia, loan

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Thevelia Holdings Ltd. The agency also gave a B2 rating to the $760 million senior secured first-lien term loan due 2029, which will be issued by Thevelia (US) LLC and guaranteed by most of its group companies.

Thevelia will become the parent and holding company for Trivium Holding Ltd., which wholly owns key operating subsidiaries - Tricor Holdings Ltd. and Trivium Madison Pacific Investment Ltd. (Hong Kong).

"The B2 CFR reflects Tricor's strong market position in Asia, healthy growth prospects and good revenue visibility because of limited cyclicality in demand and its high recurring revenue. The rating also accounts for the company's strong profitability and low capital expenditure, which supports positive free cash flow (FCF) generation," said Stephanie Lau, a Moody's vice president and senior credit officer, in a press release.

"On the other hand, the rating is constrained by Tricor's small revenue scale, high financial leverage, event risks related to potential debt-funded acquisitions and its private company status," added Lau.

The company also plans to secure a $130 million revolving facility and a $260 million second-lien term loan due 2030. Baring Private Equity Asia's will use the proceeds to help fund its about $2.76 billion acquisition of Trivium Holding Ltd. The balance of the purchase price is provided through an equity injection of $1.8 billion by BPEA.

The outlook is stable.

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