Moody's rates Verisure loan, notes B1

Moody's Investors Service said it affirmed the B2 corporate family rating and B2-PD probability of default rating of Verisure Midholding AB.

The agency concurrently affirmed Verisure Holding AB's B1 ratings of the senior secured facilities, including the €2.38 billion term loan and the €300 million revolving credit facility, along with the B1 rating on its €630 million senior secured notes and the Caa1 rating of the €980 million and SEK1.650 billion unsecured notes.

Moody's also said it assigned B1 ratings to the new €1.012 senior secured term loan and senior secured notes at Verisure.

The outlook is stable.

The ratings follow news that the company plans to raise new secured debt of €1.012 billion in total and increase the existing unsecured notes by €100 million to repay the existing €630 million senior secured notes, repay €103 million drawn on the revolver, pay a dividend of €353 million and finance various transaction fees and expenses, Moody's explained.

The company's leverage, as measured by its adjusted debt-to-EBITDA, will increase to 7.5x pro forma for the proposed dividend recapitalization, from 6.9x as of Sept. 30, the agency said.

Moody's said it expects the company to decrease leverage toward 6x over the next 12- to 18-months based on the solid organic growth rates and cost efficiencies, Moody's said.

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