S&P rates Sportradar, loan B

S&P said it assigned preliminary B ratings to Sportradar Holing AG and its planned €420 million term loan. The company also plans to secure a €110 million revolver to be undrawn at close.

Proceeds will be used to refinance Sportradar’s €125 million of bank debt facilities and to fund a near-term acquisition.

“On a pro forma basis, we expect the adjusted debt to EBITDA to reach close to 6.5x in 2020 and revert to below 6x in 2021, resulting in a highly leveraged capital structure. That said, the company’s ability to generate solid FOCF supports our rating with estimated S&P Global Ratings-adjusted FOCF to debt of about 10% in 2020 and 2021,” S&P said in a press release.

The outlook is stable. The outlook assumes Sportradar will report year-on-year organic revenue growth of around 10% in 2021 after a low-single-digit decline in 2020 while maintaining S&P Global Ratings-adjusted EBITDA margins of 16%-20%, the agency said.

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