Moody’s assigns Rovensa B, loans B

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Rovensa (Root Bidco Sarl) and B2 ratings to the senior secured €440 million term loan B and the €115 million revolving credit facility.

Moody’s said it sees withdrawing all ratings for European Crops Products 2 Sarl once the transaction closes in late 2020.

Term loan proceeds will be used to repay debt and help acquire a majority stake in the company, which will result in higher Moody’ s-adjusted debt of around €116 million. “Pro-forma gross leverage will be about 6.4x, which leaves the B2 CFR initially weakly positioned,” the agency said in a press release.

The term loan and revolver rank equally. Both facilities benefit from guarantors representing at least 80% of consolidated group EBITDA. The B2 are aligned with the B2 CFR because they present the majority of debt in the structure apart from leases and trade claims, Moody’s said.

The negative outlook mirrors the company’s weak positioning within the B2 rating category, the agency said.

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