S&P rates Proxiserve loan B

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

Infrastructure investment firms Asterion Industrial and Mirova have each acquired a 40% stake in Proxiserve via Financiere Groupe Persea, S&P explained.

Proxiserve's management retained a 20% stake.

Financiere Groupe Persea has issued a €335 million seven-year senior secured term loan to fund the acquisition and repay Proxiserve's outstanding debt, the agency said.

Proxiserve's strong niche market positions in heating and water sub-metering in France support the group's business risk profile, S&P said.

The company operates in a market benefitting from a favorable regulatory environment and a legal requirement for sub-metering in multi-tenant buildings, the agency said.

In contrast with many other European countries, France has only recently implemented European directives relating to heating sub-metering, resulting in the current underpenetrated market, S&P said.

The stable outlook reflects an expectation that Proxiserve will generate 4% to 6% revenue growth and 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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