Moody’s rates Elsan loan B1

Moody’s Investors Service said it rated Elsan SAS’ new €350 million non-fungible senior secured incremental term loan B, maturing in 2028.

Concurrently, the agency affirmed Elsan’s B1 corporate family rating and B1-PD probability of default rating. Also, Moody’s affirmed the B1 ratings on Elsan’s €1.4 billion senior secured term loan and €210 million senior secured revolver.

Elsan will use proceeds to acquire Groupe C2S, for €736 million, including transaction costs. Elsan will also fund the transaction with a sale and lease-back on a proportion of the acquired perimeter’s assets and cash on balance.

Finally, Moody’s changed Elsan’s outlook to negative from stable. “The negative outlook reflects Moody’s expectation that leverage, as measured by Moody’s-adjusted debt to EBITDA, will remain high for the B1 rating and that deleveraging towards 6x over the next 12 to 18 months will depend on the company executing its business plan to generate strong EBITDA growth and Elsan’s financial policy including future M&A strategy,” the agency said in a press release.

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