Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Seren BidCo AB > News item |
Moody's assigns B3 to Anticimex
Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Seren BidCo AB, the holding company for Anticimex Group. Concurrently, Moody's gave B2 instrument ratings to the planned SEK 16 billion equivalent first-lien senior secured term loan B and the proposed SEK 3 billion equivalent first-lien senior secured revolving credit facility.
The capital structure also includes the proposed SEK 4.2 billion equivalent second-lien senior secured term loan, which remains unrated.
The agency noted the B3 rating is supported Anticimex’s market position, its geographic diversification in 20 countries worldwide, its high share of recurring revenue and high customer retention rate.
“However, the rating is constrained by (1) the company's very high starting leverage with Moody's adjusted gross debt of around 8.5x expected at deal closing; (2) event risk related to future acquisitions in a highly fragmented market that may prevent quick deleveraging in the future; (3) a large number of acquisitions executed historically per year with relatively high transaction multiples, albeit the company has demonstrated strong track record of integration,” Moody’s said in a press release.
Term loan proceeds will be used to finance the acquisition of Anticimex by EQT Future, and EQT controlled vehicles, and certain shareholders in Anticimex, to refinance its debt and pay transaction fees and expenses.
The outlook is stable.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.