S&P rates Financiere Efel, facility B

S&P said it assigned a preliminary B long-term corporate credit rating to Financiere Efel SAS.

The outlook is stable.

At the same time, the agency assigned a B preliminary issue rating to the proposed €230 million senior secured term loan B and €10 million revolving credit facility, which rank pari passu. The 3 preliminary recovery rating reflects the relatively low amount of prior-ranking liabilities and an expectation of about 55% recovery for shareholders in a payment default.

Financiere Efel, the ultimate holding company of the Averys Group, is considering refinancing its existing debt and repaying its convertible bonds (OC) and preferred shares (ADP) – together the shareholder loan – which were subscribed by one of Equistone's investment vehicles. Equistone acquired the Averys group in June 2015.

S&P said the stable outlook reflects our expectation that Financiere Efel will maintain an EBITDA margin of 12%-13%, and report S&P-adjusted debt to EBITDA just below 5 times and funds from operations to debt at about 11%-15% for year-end 2017 and 2018.

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