Moody's gives B3 rating to Expleo, loans

Moody's Investors Service said it assigned a B3 corporate family rating, a B3-PD probability of default rating and B3 ratings to the backed senior secured bank credit facilities of Expleo Services SAS. The outlook is stable.

“This rating assignment is based on the amend and extend (A&E) transaction launched by Expleo to address the upcoming maturities of the backed senior secured term loan B (TLB) and backed senior secured revolving credit facility (RCF). Following this transaction, the maturity of the TLB will be September 2027 and RCF will be March 2027. A £50 million TLB will be raised as part of this A&E transaction and will mature in September 2027,” Moody’s said in a press release.

The agency said it projects Expleo to post revenue of around €1.4 billion to €1.6 billion and Moody's adjusted EBITDA of around €130 million to €160 million over 2023-2024.

“Free cash flow generation to debt was negative at 13% for 2022 due to a high amount of non-recurring charges and exceptional working capital outflows related to the implementation of the company's ERP program. Moody's expects FCF/debt to improve but still be negative at 5.4% in 2023 and turn positive in 2024 at around 3% as final payments of these exceptional items stop in 2023,” the agency said.

© 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.