S&P rates Renta, notes B

S&P said it gave B ratings to Ren10 Holding AB (Renta Group Oy) and its €350 million of senior secured floating-rate notes. The outlook is stable.

“The acquisition of Renta by IK Partners closed broadly as presented to us at the time of assigning preliminary ratings, and operating performance and credit metrics for 2022 are comfortably in line with our previous expectations. IK Partners acquired Renta Group for an enterprise value of approximately €750 million. To finance this, the group issued €350 million in senior secured notes and a €75 million super senior revolving credit facility (RCF),” S&P said in a press release.

The agency said it sees Renta generating organic revenue growth of about 8% in 2022 and S&P Global Ratings-adjusted EBITDA margins of about 35%.

“At the same time, we expect the company to maintain an adjusted debt-to-EBITDA ratio of less than 4x and positive free operating cash flow (FOCF) from 2023,” S&P said.

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