S&P gives Rovensa, loan B

S&P said it assigned preliminary B ratings to Rovensa (Root Bidco Sarl) and its planned €440 million senior secured term loan. Rovensa also plans to secure a €115 million revolving credit facility.

Proceeds along with equity will be used by Partners Group to buy a majority stake from Bridgepoint through the Root Bidco holding company and refinance debt. The agency said it expects the revolver to remain undrawn at closing.

“The transaction will result in about €120 million more in senior secured debt. As a result, Rovensa's adjusted gross debt to EBITDA will weaken to about 7.2x on a pro forma basis for FY2020. This compares with about 6.5x that we anticipated for FY2020 prior to the transaction,” S&P said in a press release. However, S&P said it forecasts the company quickly cutting adjusted debt to EBITDA to about 5.6x-5.8x in FY2021.

The outlook is stable.

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