S&P rates Proxiserve loan B

S&P said it assigned a preliminary B long-term issuer credit rating to Financiere Persea (Proxiserve) and the preliminary B rating and 3 recovery rating to the proposed €335 million senior secured term loan B.

The action follows news Asterion Industrial and Mirova will each acquire a 40% stake in Proxiserve, the agency said.

To finance the transaction, Financiere Persea intends to issue a €335 million seven-year senior secured term loan. The debt package also will include a €60 million 6.5-year senior secured revolving credit facility, S&P said.

The ratings reflect Proxiserve's strong niche market positions in heating and water sub-metering in France, which supports the group's business risk profile, the agency said.

This market benefits from a favorable regulatory environment, characterized by the legal requirement for sub-metering in multi-tenants buildings, S&P said.

The stable outlook reflects an expectation that Proxiserve will generate 4% to 6% revenue growth and to improve its profitability while maintaining an adjusted debt-to-EBITDA ratio of 5x to 6x in the next 12 months, S&P said.

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