S&P rates Financiere N B

S&P said it assigned a B issuer credit rating to Financiere N, the parent company of medical device manufacturer Nemera.

Financiere N has completed the allocation of a €375 million senior secured first-lien term loan due 2026 and a €85 million second-lien term loan due 2027, supporting its buyout by private equity groups Montagu Private Equity, Astorg Partners, and Nemera's management.

The final loan agreement and pricing is in line with earlier assumptions, the agency said, and its adjusted leverage is expected to fall to less than 7x over the next 12- to 18-months, benefiting from increasing EBITDA.

The B rating is constrained by the group's financial-sponsor ownership and very high closing leverage of about 8x, S&P said.

The rating also considers Nemera's small size relative to the wider outsourced medical equipment manufacturing industry, high customer concentration and below-average profitability, the agency said.

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