Fitch gives Thevelia B, loan B+

Fitch Ratings said it gave Thevelia Holdings Ltd. a first-time expected long-term foreign-currency issuer default rating of B. The agency also assigned an expected B+ rating with an RR3 recovery rating to the planned senior first-lien secured term loan B, which will be issued by wholly owned subsidiary Thevelia (US) LLC.

Baring Private Equity Asia agreed to acquire Tricor Group and will do so via Thevelia. It will use the loan to help fund the deal.

“The ratings reflect Thevelia's high leverage following the acquisition, but Fitch expects Tricor's high profitability and strong cash flow generation to support subsequent deleveraging. Tricor's business profile is supported by the defensive nature of its revenue, where a high proportion is recurring and from a diverse, high-quality customer base,” Fitch said in a press release.

The agency said it projects Thevelia's pro forma consolidated FFO gross leverage at 9x by end-2022 before slimming to around 8x by 2024.

The outlook is stable.

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