S&P rates TSS, loan B+

S&P said it preliminarily rated TSS (Poseidon BidCo SAS) and its planned €1.05 billion senior secured term loan B+. The outlook is stable.

Apollo-affiliated investment funds reported the acquisition of TSS through its holding company Poseidon Bidco, for €2.3 billion, including about €640 million of class B shares. The transaction is expected to close by end of September and will be partly funded by a €1.05 billion senior secured term loan and a €250 million revolving credit facility.

TSS is a market leader for payment terminals. With a large installed base of about 35 million units, TSS ranks first globally for payment terminals with a 24% market share, excluding mobile POS, in 2020 (in POS shipment volumes), well ahead of competitors Verifone (15%), Pax (10%), and other smaller Asia-based players.

“The stable outlook reflects our expectations that TSS' revenues will grow following its move toward more recurring revenues, and that adjusted debt to EBITDA will be between 5x and 5.5x in 2022 and 2023, coupled with FOCF to debt above 7%,” S&P said in a press release.

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