Moody’s: Rhiag notes unaffected by upsize

Moody's Investors Service said the B2 rating of the senior secured floating-rate notes due 2019 issued by Rhino Bondco SpA, a subsidiary of Rhiag Group, remains unaffected by the €50 million upsize.

The tap issuance is added to the existing debt structure that consist of €200 million senior secured floating-rate notes due 2019 and €215 million senior secured notes due 2020.

Proceeds will be used to repay the drawings under its €75 million revolving credit facility partly used to fund the acquisition of ERA SpA.

Moody's said it expects the tap issuance to slightly increase debt-based ratios, with an expected Moody's-adjusted leverage around 5.7 times at the end of fiscal year 2014, pro forma for the ERA acquisition and excluding synergies.

However, the agency expects this acquisition to enhance the company's business profile by (a) increasing its geographic footprint given that 60% of ERA revenues are generated outside Italy, Rhiag's historical market; and (b) widening its product portfolio with private label brands and electronic parts.

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