Moody's rates Bingo, loans Ba3

Moody's Investors Service said it assigned a first-time Ba3 corporate family rating to Recycle and Resource Operations Pty Ltd. (Bingo). Moody's also gave Ba3 senior secured ratings to Bingo's proposed seven-year A$825 million equivalent first-lien term loan, A$100 million equivalent delayed-draw first-lien term loan facility and A$75 million equivalent revolving credit facility. The outlook is stable.

“Bingo's rating benefits from its strong market position as the leading vertically integrated player in building and infrastructure (B&I) waste, in the Australian state of New South Wales (NSW). The company owns a network of well-located post collection waste facilities that are difficult to replicate, supporting its earnings generation and providing considerable barriers to entry,” Moody’s said in a press release.

However, the rating is constrained by Bingo's concentration towards NSW B&I waste, where waste volumes vary depending on overall construction activity. Bingo's earnings for the fiscal year ending June 2021 are expected to be hurt by the weaker B&I waste market due to lower construction activity, the agency said.

The proceeds will be used to fund the acquisition of Bingo Industries Ltd. and its subsidiaries by Macquarie Infrastructure and Real Assets and its managed funds for an enterprise value of A$2.6 billion

“The stable outlook reflects Moody's view that Bingo will maintain credit metrics within the parameters set for its rating over the next 12-18 months,” the agency said.

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