S&P assigns B+ to Ingenico loan

S&P said it assigned B+ issue-level and 3 recovery ratings to the planned €1.1 billion term loan that Poseidon BidCo SAS (Ingenico) plans to borrow. The recovery rating is 3, indicating about 60% recovery in default.

The agency concurrently affirmed Ingenico’s B+ issuer rating.

The company will use the new loan to refinance its outstanding €1.05 billion term loan, also rated B+ with a 3 recovery rating, and pay a €100 million dividend to its shareholders.

“We expect the transaction to prolong the maturity of the term loan by two years to 2030 from 2028, while the company also looks to reduce interest costs. Given the company's increasing EBITDA, we still expect that the company will reduce debt to EBITDA from 4.2x in 2023 toward 4x in 2024, which is within our threshold for a higher rating. That said, we take into consideration Ingenico's financial-sponsor ownership and the current dividend recapitalization in our assessment of its financial policy,’ S&P said in a press release.

The outlook remains stable.

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