Moody's rates Fiber Bidco/Fedrigoni notes B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Fiber Bidco SpA (Fedrigoni).

Concurrently, Moody's assigned B2 instrument ratings to the proposed €875 million senior secured notes borrowed by Fiber Bidco. Moody's will also withdraw the outstanding B2 CFR, B2-PD and B2 instruments ratings from Fedrigoni at closing of the transaction.

The outlook is stable.

The proceeds from the proposed senior secured notes along with PIK notes and an equity injection from the new sponsors (Bain Capital and BC Partners) and the management, will be used to finance the acquisition of Fedrigoni.

Moody’ said Fedrigoni's B2 CFR is primarily supported by the company's market-leading positions in a number of structurally growing premium niches.

The B2 rating is constrained by a leverage of 5.8x Moody's-adjusted debt/EBITDA for the 12 months that ended in June 2022 pro forma for the new capital structure. Moody's expects the group's leverage to reduce toward 5.5x over the course of 2022.

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