Moody’s: United Group notes B2

Moody's Investors Service said it assigned a B2 rating to the additional €125 million senior secured notes due 2020 issued by United Group BV, a subsidiary of Adria Midco BV.

The agency also said it affirmed the B2 corporate family rating and B1-PD probability of default rating of Adria Midco BV, as well as the B2 rating of the existing €625 million senior secured notes due 2020 issued by United Group.

The outlook is stable.

The B2 rating for the additional senior secured notes is in line with the B2 rating for the €625 million existing notes as the tap is issued under the same indenture, Moody’s said.

The proceeds will be used to repay drawings under the revolving credit facility and local credit lines, the agency said, and €4 million will be used to fund the recently agreed acquisition of Maxtel.

The company has recently financed the acquisition by drawing €13 million under its revolver, Moody’s said.

The ratings reflect an expectation that despite the marginal increase in leverage due to the tap issuance, the company will continue to grow its revenues and EBITDA in 2016 and focus on de-leveraging in the coming quarters prior to considering further bolt-on acquisitions, Moody’s explained.

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