Moody’s rates Dakar Finance CFR B2, notes B3

Moody's Investors Service said it assigned a B2 corporate family rating and B1-PD probability of default rating to Dakar Finance SA, a holding company of the Autodistribution group.

Concurrently, the agency assigned a provisional B3 instrument rating to the proposed €237 million senior pay-if-you-can notes due 2020 to be issued by Dakar in support of the acquisition of Autodistribution by funds controlled by Bain Capital.

Moody’s also affirmed B2 instrument rating of Autodis SA’s €300 million senior secured notes due 2019 and withdrew the B1 corporate family rating and Ba3-PD probability of default rating of Autodis Group SAS.

The outlook on all ratings is stable.

The transaction is expected to close end of November 2015 subject to approval by competition authorities. Proceeds from the notes issuance will be held in escrow until that date.

Proceeds from the new senior pay-if-you-can notes will be used to fund a portion of the purchase price. Cash on balance sheet will be used to repay €30 million of the existing €300 million senior secured notes and €5 million of contingent value instruments. The remaining €270 million senior secured notes are currently portable, provided consolidated leverage be less than 3.75 times.

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