S&P rates Evergood, loan B

S&P said it assigned its B long-term issuer credit rating to Evergood 3 Lux Sarl, the new parent of Nets A/S. The outlook is stable.

In addition, the agency withdrew the B long-term issuer credit ratings on Evergood 4 ApS, Nassa TopCo and Nets.

S&P assigned its B long-term issue rating to the proposed incremental €475 million term loan and affirmed the B issue rating on the group's existing first-lien term loan and revolving credit facility.

The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery prospects in the event of a payment default.

The agency also affirmed the BB- issue rating on Nassa Topco's €400 million unsecured notes. The recovery rating remains 1, reflecting almost full recovery (rounded estimate: 95%).

Nets plans to acquire Concardis and Dotpay with additional first-lien term loans raised by the group's new parent and to rollover all of Concardis' existing shareholders equity.

“In our view, the acquisitions will strengthen Nets' competitive position, but we also expect high adjusted gross debt to EBITDA of above 8.0x in 2018-2019 and modest free operating cash flow (FOCF),” S&P said in a news release.

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