Fitch affirms Ephios, rates notes CCC+

Fitch Ratings said it affirmed Ephios Bondco plc's long-term issuer default rating at B(EXP) with a stable outlook.

Ephios is the holding company of Labco SA, whose B+ issuer default rating remains on negative watch.

Fitch said the action follows the announcement of the acquisition of Synlab Holding GmbH by Ephios' shareholder Cinven, and the planned merger of Synlab and Ephios. The acquisition comes just a month after Cinven's announced purchase of Ephios.

Ephios Holdco II plc has been set up as the new holding company of the enlarged Ephios, including Synlab.

The acquisition will be financed with a tap on Ephios' 2022 senior secured notes, new senior notes to be issued by Ephios Holdco and additional equity provided by Cinven. Therefore, the expected rating on Ephios' €800 million senior secured notes due 2022 (increased to €1,475,000,000 by the planned tap) was affirmed at B+(EXP)/RR3.

Fitch also assigned a CCC+(EXP)/RR6 rating to Ephios Holdco's planned €375 million senior notes due 2023.

Ephios' super senior revolving credit facility – rated BB-(EXP)/RR2 – was placed on Rating Watch Positive.

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