Moody’s gives Rexel notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Rexel SA's €600 million senior unsecured notes due 2026.

Rexel's existing ratings, comprising of Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 ratings on the company's existing senior unsecured notes, are unaffected.

The outlook remains stable.

Moody's said it understands that the proceeds from the new senior unsecured notes, together with available cash, will be used to redeem in full the €650 million 3˝% senior notes due 2023 and related transaction expenses.

The agency will withdraw the Ba3 rating on 3˝% notes upon their full redemption.

“The Ba3 rating assigned to the €600 million senior unsecured notes due 2026 reflects their pari passu ranking with all other unsecured indebtedness issued by Rexel and their unmitigated structural subordination to nonfinancial liabilities at the operating companies,” the agency said in a news release.

“Similar to Rexel's existing senior unsecured notes issued in 2015, 2016 and 2017 the new notes will have a light covenant package, i.e. exclude clauses for limitation on: restricted payments; sales of assets and subsidiary stock; and restrictions on distributions.”

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