Moody’s rates Ephios CFR B2, notes B3

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Ephios Bondco plc and a provisional B3 rating to the proposed €800 million senior secured notes.

The outlook is negative.

Proceeds will be used mostly to refinance Labco SA's outstanding €700 million senior secured notes following the May 28 announcement that shareholders of Labco entered into a share purchase agreement with private-equity sponsor Cinven to sell more than 90% of the share capital of the company subject to certain conditions precedent including regulatory approvals.

Upon the consummation of the acquisition Ephios is expected to indirectly own up to 100%, but not less than 95% of Labco's share capital and voting rights. In turn, Ephios is expected to be ultimately owned by Cinven (80%) and by reinvesting shareholders and the management of the company (20%). Moody's anticipates that the indirect cash contribution from Cinven to Ephios will be €438.7 million in the form of common equity.

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