Moody’s takes actions on Ephios

Moody's Investors Service said it assigned a provisional B2 corporate family rating to Ephios Holdco II plc, the top entity of the restricted group that will include Labco SA and Synlab Holding GmbH.

Concurrently, the agency assigned a provisional Caa1 (LGD6) rating to the proposed €375 million senior unsecured notes to be issued by Ephios Holdco II.

The rating of €1,475,000,000 senior secured notes at Ephios Bondco plc (including €800 million outstanding notes issued to acquire Labco and €675 million proposed tap) was upgraded to provisional B2 (LGD4) from provisional B3.

Moody’s withdrew Ephios Bondco’s provisional B2 corporate family rating.

The outlook is stable.

The agency also affirmed the B2 corporate family rating and B2-PD probability of default rating of Labco and the B3 (LGD4) rating on its €700 million senior secured notes.

Labco’s outlook is stable. Moody’s expects to withdraw the ratings of Labco upon consummation of the acquisition and repayment of the outstanding bonds.

Moody’s said the action follows the June 25 announcement that shareholders of Synlab, a clinical laboratory services group, entered into a share purchase agreement, under which a bidco controlled by private-equity sponsor Cinven, agreed to buy up to 100% of the share capital of Synlab subject to certain conditions precedent including regulatory approvals.

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