Moody’s assigns PAI Aldringen B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to PAI Aldringen Participations 3 Sarl (Infra Group), the top entity of the new restricted group. Concurrently, the agency assigned a B2 rating to the planned €600 million senior secured term loan B with a seven-year tenor and to the proposed €125 million senior secured revolving credit facility with 6.5-year tenor issued by Finco Utilitas BV. The outlook is positive.

Loan proceeds and equity financing will fund the purchase of a majority stake in Infra Group by PAI Partners and cover related transaction costs. PAI Partners is buying the stake from ICG, Andera Partners and Infra Group's management, who will re-invest in the business. The deal is expected to close in Q4 2023.

“Moody's adjusted leverage is estimated to be around 5.1x as of September 2023 pro forma for the transaction and the full year effect of acquisitions, but before the two pending acquisitions which are expected to close over the coming weeks. Pro forma for the pending acquisitions leverage is expected to be around 4.8x.

“Over the next 12-18 months Moody's expects Infra Group's earnings to continue to grow on the back of the infrastructure tailwinds from the green energy transition investments which are expected to compensate for the gradual slowdown in other end-markets. The growth should support a leverage reduction to below 4.5x over the next 12-18 months,” Moody’s said in a press release.

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