Moody's assigns Takecare term loan B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Takecare Bidco, the top entity of Sante cie restricted group. Concurrently, Moody's assigned a B3 instrument rating to the proposed guaranteed senior secured term loan and a B3 rating to the planned guaranteed senior secured revolving credit facility.

“The B3 CFR is constrained by the company's (1) still small size; (2) high exposure to ongoing tariff cuts in the French and German homecare services markets; (3) high leverage following the re-leveraging effect of Aposan acquisition and the proposed transaction (4) active M&A strategy, which might delay any deleveraging going forward; and (4) high capital spending requirements, which constrain free cash flow generation,” Moody’s said in a press release.

Term loan proceeds will be used to refinance Sante cie's current capital structure, distribute €70 million to its current shareholders that will be used to partially payback convertible bonds they own and pay transaction fees.

The outlook on Takecare Bidco is positive. The outlook reflects solid organic growth and the ability to improve its Moody's adjusted debt/EBITDA towards 6x in the next 18 months, absent any new re-leveraging events, Moody’s said.

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