Moody's assigns Circet, loans B2

Moody's Investors Service said assigned a first-time B2 corporate family rating and a B2-PD probability of default rating to Odyssee Investment Bidco (Circet). The agency also gave a B2 rating to the €1.625 billion senior secured term loan B due in 2028 and €250 million senior secured revolver due in 2027. The outlook is stable.

"The B2 rating reflects Circet's well-established position in key European markets, its strong growth prospects supported by the acceleration of fiber-to-the-home network deployments by telecom operators, as well as its solid and growing free cash flow generation," says Agustin Alberti, a Moody's vice president, senior analyst and lead analyst for Circet, in a press release.

"While initial adjusted leverage is high at around 5.2x by year-end 2021, we expect the company will rapidly delever, absent debt-financed acquisitions, owing to strong organic growth," added Alberti.

Term loan proceeds, new equity, a shareholder loan from ICG and rollover equity from shareholders, will be used to finance the €3.25 billion acquisition of Circet by private equity sponsor ICG, and to pay transaction fees and expenses.

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