Moody’s rates Flamingo B2, Foncia loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Flamingo SAS, future parent company of Foncia Holding SAS Group.

Consequently, the agency assigned provisional B2 ratings to €803 million seven-year senior term loan B, €50 million seven-year senior acquisition/capex facility and €150 million six-year revolving credit facility borrowed within Foncia.

The outlook on all ratings is stable.

The action follows the announcement that Partners Group signed an agreement on July 4 to acquire Foncia Group from Bridgepoint and Eurazeo.

The proceeds from credit facilities listed above, alongside €187 million second-lien debt and about €915 million equity and shareholder loans from shareholders led by Partners Group, will be applied to pay the purchase price for the acquisition, refinance existing debt and pay associated fees and expenses. The acquisition is expected to complete in September.

Moody’s said the ratings take into account the following factors: (a) The company's leading position within a fragmented market, high level of recurring revenue stream as well as growth opportunities via add-on acquisitions; and (b) concentration in French residential housing market and high leverage combined with acquisition debt financing.

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