S&P rates Anticimex B

S&P said it assigned preliminary B ratings to Anticimex (Seren BidCo AB) and its new first-lien debt. The debt’s recovery rating is 3, indicating an expectation of meaningful recovery prospects (50%-70%; rounded estimate: 60%) in default.

EQT Future and co-investors signed a binding agreement to acquire Anticimex from EQT IV via a newly formed entity, Seren BidCo. EQT will fund the acquisition with an equity contribution of about SEK 43 billion, first-lien term debt totaling SEK 16 billion and SEK 4.2 billion of second-lien debt already privately placed.

“Following the transaction, we expect S&P Global Ratings-adjusted debt to EBITDA will be about 8.5x by year-end 2021. However, we expect adjusted debt to EBITDA to reduce by 1x in 2022, despite the company continuing with its acquisition strategy,” the agency said in a press release.

The outlook is stable, reflecting the view that continued organic growth and strong EBITDA margin generation should help leverage reduction in 2022, with adjusted debt to EBITDA dropping below 7.5x by the end of 2022 and sound free operating cash flow, S&P said.

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