/raid1/www/Hosts/bankrupt/TCREUR_Public/250203.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, February 3, 2025, Vol. 26, No. 24
Headlines
B E L G I U M
FETCH BIDCO: Moody's Assigns First Time B1 Corporate Family Rating
INFINITY BIDCO 1: Moody's Alters Outlook on 'B2' CFR to Negative
F I N L A N D
AHLSTROM HOLDING 3: Moody's Affirms 'B2' CFR, Outlook Negative
F R A N C E
ECOTONE HOLDCO III: Moody's Alters Outlook on 'B3' CFR to Stable
G E R M A N Y
SCHOEN KLINIK: Moody's Raises CFR to B1 & Alters Outlook to Stable
I R E L A N D
BLACKROCK EUROPEAN XV: S&P Assigns B-(sf) Rating on Cl. F Notes
TRINITAS EURO I: S&P Raises Class E Notes Rating to 'BB+(sf)'
I T A L Y
EFESTO BIDCO: S&P Assigns Preliminary 'B-' ICR, Outlook Positive
ENGINEERING INGEGNERIA: Moody's Affirms 'B3' CFR, Outlook Stable
L U X E M B O U R G
MATADOR BIDCO: S&P Affirms 'B+' ICR & Alters Outlook to Negative
S W E D E N
INTRUM AB: S&P Cuts ICR to 'SD' After Missing Interest Payments
S W I T Z E R L A N D
GATEGROUP HOLDING: S&P Upgrades ICR to 'B-' on Improved Leverage
U N I T E D K I N G D O M
ANNINGTON LIMITED: Moody's Withdraws 'Ba1' Corporate Family Rating
CAMELOT UK: S&P Affirms 'BB-' ICR & Alters Outlook to Negative
COMMUNITY & BUSINESS: Begbies Traynor Named as Administrators
HOWDEN GROUP: S&P Affirms 'B' ICR on Strong Organic Growth
INSPIRED EDUCATION: S&P Rates New EUR300MM Term Loan Add-On 'B'
JUPITER MORTGAGE 1: S&P Cuts Class E Notes Rating to 'B+(sf)'
MERLIN ENTERTAINMENTS: S&P Rates New $410MM Sr. Secured Notes 'B'
MOTION MIDCO: Planned Notes Issuance No Impact on Moody's 'B3' CFR
POLARIS PLC 2025-1: S&P Gives Prelim. B- Rating on Class X Notes
REDBOOKINTERNATIONAL LTD: James Cowper Named as Administrators
X X X X X X X X
[] BOND PRICING: For the Week January 27 to January 31, 2025
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B E L G I U M
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FETCH BIDCO: Moody's Assigns First Time B1 Corporate Family Rating
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Moody's Ratings has assigned a first-time B1 long-term corporate
family rating and B1-PD probability of default rating to Fetch
Bidco BV, a new holding company established as part of the transfer
of United Petfood (or the company), the leading European producer
of pet food for third parties, into a new single-asset continuation
fund managed by private equity firm Waterland and the founding
family. Concurrently, Moody's have assigned B1 ratings to the
proposed new EUR1,225 million backed senior secured term loan B
maturing in 2032 and to the EUR200 million backed senior secured
revolving credit facility (RCF) maturing in 2031, both borrowed by
United Petfood Finance B.V. (a wholly owned and backed subsidiary).
The assigned ratings assume successful completion of the planned
transactions and are subject to Moody's receipt and review of final
documentation. The outlook on all entities is stable.
The proceeds from the proposed term loan will be used to partially
finance the purchase price of the acquisition and refinance
existing debt. As a result, the transaction resets the capital
structure and Waterland's ownership stake will increase from 68% to
72%, with the remaining shares retained by the founding family and
management.
RATINGS RATIONALE
The B1 CFR assigned to United Petfood reflects (1) the company's
well-established position in the third-party dry pet food market
segment; (2) the wide diversification of its sales and
manufacturing footprint across Europe, with a foothold in US and
APAC/MEA regions; (3) the company's strong position in the
co-manufacturing channel, increasing share of premium products and
a lean cost structure, supporting relatively good operating
margins; and (4) good liquidity and projected positive free cash
flow (FCF).
The B1 CFR also factors in (1) the company's high financial
leverage for the rating category, with prospects of deleveraging;
(2) limited product diversification, with around 84% of revenue
coming from the dry pet food category, and a degree of customer
concentration; (3) concentrated cost base, which exposes the
company to commodity price inflation, mitigated by proven
pass-through capabilities; and (4) high appetite for acquisitions,
which creates potential integration risks, although Moody's
recognize a track record in acquiring value-enhancing assets.
Although the proposed transaction would raise the overall gross
leverage by 2.6x compared with the previous capital structure, the
current rating ponders the historical stronger-than-expected
operating performance. United Petfood's revenue increased by 6% in
the twelve months as of September 2024, while the company's
Moody's-adjusted EBITDA increased by 32% year-on-year, resulting in
further deleveraging, such that its Moody's adjusted gross debt to
EBITDA ratio improved to 1.6x in 2024 from 2.2x in 2023. The very
strong improvement in earnings is driven by a continued focus on
both premium and high margin products, increased diversification in
wet pet food and synergies at the acquired production sites.
By taking into account the new capital structure, Moody's expect
debt/EBITDA (on a Moody's-adjusted basis) to remain below 4.5x over
the 12-18 months following the closing of the transaction, with
interest coverage (EBITA/interest expense) at above 3.0x. Future
deleveraging is expected to be driven primarily by volume growth
through new markets penetration, ongoing market share gains, and
increased spending by existing customers. This will be achieved by
leveraging a strong position in dry pet food to cross-sell
fast-growing segments like snacks and wet pet food in Europe.
Additionally, improvements will come from a better mix of
high-margin products and channels, synergies from acquisitions, and
continuous operational enhancements through automation and
procurement savings.
Moody's anticipate free cash flow (FCF) generation will remain
positive by more than EUR35 million in both 2025 and 2026, despite
significant growth investments of approximately EUR75-80 million
each year in greenfield and semi-greenfield projects. Moody's
believe that these levels of capital spending remain manageable and
the management retains flexibility on the timing of these
investments. FCF generation is expected to increase substantially
beyond 2026.
In the context, the company's financial policy is an important
factor for the assigned ratings. United Petfood has a track record
of growing via acquisitions, having completed 10 transactions since
2021, almost fully financed through internally generated cash.
Recently, the company expanded into the US by acquiring its first
manufacturing facility in the country. This expansion opens up
additional opportunities and allows the company to better serve
customers in this key market. However, it also entails some
execution risks due to the competitive US pet food industry, where
premium brands face challenges from mid-priced and value brands
that are continually improving their offerings. Nevertheless,
United Petfood's ability to produce both private label and
third-party brands provides a hedge against the consumer shift
towards value and private label products driven by inflation.
Moody's believe that the company is likely to pursue further
bolt-on acquisitions in the future to complement its organic
growth. However, the rating agency understands that both Waterland
and the founding family are committed to maintain the company's net
leverage below 4.5x (equivalent to a Moody's adjusted leverage of
4.8x).
ESG CONSIDERATIONS
ESG and specifically governance is a key driver of the rating
action. As a consequence, the rating is lower than it would have
been if ESG risk exposures did not exist to reflect the weight
placed on United Petfood's financial policy and concentrated
ownership under private equity firm Waterland. This is mitigated by
the fact that the founding family and management will retain a 28%
ownership stake in the company alongside the private equity sponsor
and will have veto rights. Moody's understand that both Waterland
and the founding family are committed to maintaining the company's
net leverage below 4.5x. Exposure to environmental and social risks
exist but have less influence on the rating. These considerations
are reflected in United Petfood's Credit Impact Score (CIS) of 4.
LIQUIDITY
Moody's expect United Petfood to maintain good liquidity over the
next 12-18 months following the transaction, supported by an
estimated post-closing cash balance of EUR35 million and a EUR200
million committed RCF, expected to be undrawn. The RCF has only one
springing covenant based on senior secured net leverage not
exceeding 7.5x, tested quarterly when the facility drawing (net of
restricted cash) exceed the higher of 40% of the revolving facility
commitments or EUR100 million. Moody's expect United Petfood to
maintain sizeable capacity under this covenant.
Moody's expect United Petfood to generate positive Moody's-adjusted
free cash flow of more than EUR35 million in both 2025 and 2026
which Moody's believe to be used to fund bolt-on acquisitions.
United Petfood has also access to a EUR100 million factoring
facility, which it customarily utilizes.
Assuming no RCF utilisation, the company will have no material debt
maturities until 2032, when its term loan is due.
COVENANTS
Moody's have reviewed the marketing draft terms for the new credit
facilities. Notable terms include the following:
Guarantor coverage will be at least 80% of consolidated EBITDA
(determined in accordance with the agreement) and include all
companies representing 5% or more of consolidated EBITDA. Only
companies incorporated in Belgium, France, the Netherlands,
Romania, Spain, UK and other jurisdictions representing more than
10% of EBITDA where guarantees are customary are required to
provide guarantees and security. Security will be granted over key
shares, bank accounts and receivables, and floating charges will be
granted where customary.
Unlimited pari passu debt is permitted up to a senior secured
leverage ratio (SSNLR) of 4.5x, and unlimited other debt is
permitted subject to a total net leverage ratio of 6.0x. Any of
this capacity can be made available as incremental debt. Unlimited
restricted payments are permitted if SSNLR is 3.50x or lower, and
unlimited repayments of junior debt are permitted where SSNLR is
3.75x or lower. 50% of asset sale proceeds are only required to be
applied where SSNLR is 4.0x or greater.
Adjustments to consolidated EBITDA include the full run rate of
cost savings and synergies, capped at 25% of consolidated EBITDA
and believed to be realisable within 18 months.
The proposed terms, and the final terms may be materially
different.
STRUCTURAL CONSIDERATIONS
The B1 ratings assigned to the EUR1,225 million backed senior
secured term loan and the EUR200 million backed senior secured RCF,
both borrowed by United Petfood Finance B.V., are in line with the
CFR, reflecting the fact that these two instruments rank pari passu
and will represent substantially all of the company's financial
debt at closing of the transaction. These facilities are guaranteed
by material subsidiaries representing at least 80% of consolidated
EBITDA and will benefit from pledges over the shares of the
borrower, bank accounts and intragroup receivables, which Moody's
consider as weak.
The B1-PD probability of default rating assigned to United Petfood
reflects Moody's assumption of a 50% family recovery rate, given
the weak security package and the limited set of financial
covenants.
Moody's understand that the equity contribution provided by funds
advised by private equity firm Waterland and by the founding family
will be in the form of common equity.
RATIONALE FOR THE STABLE OUTLOOK
The stable rating outlook reflects Moody's expectation that United
Petfood's credit metrics will remain resilient, with its
Moody's-adjusted gross leverage below 4.5x in the next 12-18
months, supported by increasing FCF generation. The stable outlook
also assumes that the company will maintain a good liquidity
throughout the year and adopt a cautious approach to acquisitions,
ensuring that these do not result in a significant increase in
leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company (1) maintains
consistent organic revenue growth, stable or improving
profitability, and successfully diversifies beyond dry pet food;
(2) reduces its Moody's-adjusted gross debt/EBITDA ratio towards
3.0x, keeps EBITA/interest expense sustainably above 3.0x, and
demonstrates a track record of operating with lower leverage and
prudent financial policies supporting these credit metrics; (3)
continues to generate sustainable positive free cash flow while
maintaining good investment, and (4) its liquidity remains good.
Downward pressure on the rating could develop if (1) the company's
Moody's-adjusted gross debt/EBITDA ratio exceeds 4.5x due to
substantial debt-financed acquisitions, significant market share
losses, or declining profitability; (2) the company experiences
negative free cash flow, resulting in a weakened liquidity profile.
Additionally, the ratings could be lowered if the company's
financial policy becomes more aggressive.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
COMPANY PROFILE
United Petfood, headquartered in Belgium, is a leading European pet
food producer primarily for private labels (40% of LTM revenue as
of September 2024, pro forma for the acquired businesses) and small
to medium brands under co-manufacturing contracts (41% of revenue),
as well as for specialist retailers and e-commerce. The company
mainly produces dry pet food (84% of revenue) and is diversifying
into pet biscuits, snacks, and wet food. For the fiscal year 2024,
the company expects to generate EUR1.4 billion in revenue and
EUR337 million in EBITDA (pro forma for 2024 acquisitions). The
company is 72% owned by Waterland private equity funds, with the
founding family and management holding the remainder.
INFINITY BIDCO 1: Moody's Alters Outlook on 'B2' CFR to Negative
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Moody's Ratings has affirmed Infinity Bidco 1 Limited's (Corialis
or the company) long-term corporate family rating and probability
of default rating at B2 and B2-PD, respectively. The instrument
ratings of the EUR989 million equivalent senior secured first lien
term loan B (TLB or term loan B) including the proposed EUR90
million fungible TLB add-on, and the EUR150 million senior secured
first lien revolving credit facility (RCF) issued by the company
were also affirmed at B2. The outlook was changed to negative from
stable.
Proceeds from the proposed EUR90 million fungible term loan B
add-on will be used to partially fund the acquisition of 100% of
the shares of Gutmann Group, a German manufacturer of aluminium
profile systems for windows, doors, and facades. This
leverage-neutral acquisition is modestly credit positive, as it
enables further geographic diversification into the DACH regions.
In addition, it allows for diversification of the product portfolio
into niche markets such as aluminium-wood systems and windowsills.
At the onset the acquisition of Gutmann Group will be margin
dilutive for Corialis with however some potential to increase
margins of Gutmann over time. Significant cross-selling
opportunities are expected across hubs, as existing Corialis
products will be offered in the DACH markets and Gutmann specific
products in the existing hubs.
RATINGS RATIONALE
The rating action was solely driven by Corialis's
weaker-than-expected operating performance amid prolonged downturn
in the construction sector and delayed demand recovery for
renovations and new builds. Weakness in demand and aluminium price
volatility has led to lower extrusion gross margins in the
Engineered Solutions division and subdued results in the
Architectural Systems division across France, Benelux, and the UK.
Delayed earnings recovery, past Moody's previous expectations, has
led to a rise in Moody's-adjusted debt/EBITDA to 7.6x at the end of
2024 (based on preliminary results) from 6.5x in 2023. It has also
resulted in weak interest coverage, as indicated by
Moody's-adjusted EBITA/Interest Expense of 1.3x in December 2024.
More positively, Corialis' rating position continues to be
supported by the company's (1) leading market position in niche
aluminium profiles and its vertically integrated operations that
optimise delivery lead time and working capital management; (2)
diversified geographical footprint across key European markets,
ensuring close proximity to both suppliers and customers; (3) good
liquidity position, supported by a solid cash balance, a fully
undrawn RCF, and positive free cash flow (FCF) generation; and (4)
its track record of a financial policy characterised by organic
growth-driven expansions, voluntary debt repayments, and absence of
dividend distributions.
However, the rating remains constrained by (1) the cyclical nature
of the construction industry to which Corialis is exposed albeit
partially mitigated by larger exposure to renovation activities and
the residential end-market; (2) the company's exposure to volatile
input costs (particularly aluminium and energy); (3) challenging
market conditions with limited visibility on timely recovery of
demand, especially in structurally challenging markets such as
France, Benelux, and Germany; and (4) currently weak credit metrics
which leave limited headroom for further earnings or liquidity
deterioration.
RATIONALE OF THE OUTLOOK
The negative outlook reflects Corialis's weaker than expected
operating performance in a challenging cyclical downturn and
Moody's expectation that Moody's-adjusted debt/EBITDA will remain
elevated at around 6.5x by the end of 2025, before decreasing to
levels commensurate with B2 rating position by the end of 2026. The
negative outlook also reflects a high degree of uncertainty on both
the strength and timing of a volumes recovery in Corialis' key
markets.
LIQUIDITY
Moody's expect Corialis to maintain good liquidity, underpinned by
around EUR81 million available cash and EUR150 million fully
undrawn committed RCF as of December 31, 2024. In addition,
Corialis has access to a non-recourse factoring program which
further strengthens its liquidity and financial flexibility.
Moody's expect Corialis to maintain a solid headroom under its
springing covenant (set at maximum senior secured net debt/EBITDA
of 10.4x) which is only tested when net RCF drawings exceed 40%.
In the next 12-18 months, Moody's expect Corialis to generate
positive free cash flow as funds from operations comfortably cover
working capital swings and capital expenditure needs. Concurrently,
the company strategically funded its acquisition of Gutmann Group
with a mix of term loan B add-on and cash on hand.
The company benefits from a comfortable debt maturity profile with
no significant upcoming debt maturity prior to July 2028, when the
EUR989 million equivalent senior secured first-lien term loan B
(proforma for the EUR90 million fungible add-on) comes due.
STRUCTURAL CONSIDERATIONS
Proforma for the proposed fungible senior secured first lien term
loan B add-on, Corialis' capital structure will consist of EUR989
million-equivalent senior secured first lien term loan B and EUR150
million senior secured RCF, both rated B2 in line with the CFR. The
company's PDR of B2-PD also remains in line with the CFR and
reflects the use of Moody's standard assumption of 50% family
recovery rate.
Both TLB and RCF are guaranteed by operating subsidiaries
representing at least 80% of the consolidated group's EBITDA, but
their security package is limited to share pledges, intragroup
receivables, and bank accounts. Hence, in Moody's Loss Given
Default for Speculative-Grade Companies (LGD) waterfall, they rank
pari passu among themselves and with unsecured trade payables,
pension obligations and short-term lease liabilities at the level
of the operating entities.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure could arise if:
-- Moody's-adjusted Debt/EBITDA declines below 5.0x on a sustained
basis
-- Moody's-adjusted FCF remains positive on a sustained basis,
resulting in FCF/Debt above 5%
-- Liquidity remains good
Conversely, ratings could be downgraded if:
-- The company's operating performance continues to deteriorate,
such that Moody's-adjusted Debt/EBITDA remains well above 6.0x on a
sustained basis
-- Moody's-adjusted EBITA/Interest does not improve towards 2.0x
-- Moody's-adjusted FCF deteriorates towards break-even
-- Liquidity weakens
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Building
Materials published in September 2021.
CORPORATE PROFILE
Headquartered in Lokeren, Belgium, Corialis designs, manufactures
and distributes aluminium profile systems for in-wall, outdoor and
indoor products. The company operates a business-to-business
strategy, distributing its systems to small and medium-sized local
fabricators and installers. As of December 2024, the company
operates in more than 40 countries through nine hubs located in
Europe, South Africa and La Reunion. In 2024, the company generated
EUR772 million in revenue and EUR135 million in company's recurring
EBITDA (based on preliminary results).
The company is owned by funds managed by Astorg (51%), CVC Capital
Partners (33%) and management (16%).
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F I N L A N D
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AHLSTROM HOLDING 3: Moody's Affirms 'B2' CFR, Outlook Negative
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Moody's Ratings has affirmed the B2 long-term corporate family
rating of Ahlstrom Holding 3 Oy (Ahlstrom), its B2-PD probability
of default rating and its B2 instrument ratings on the senior
secured bank credit facilities and the senior secured global notes.
The outlook remains negative.
RATINGS RATIONALE
The rating action reflects the company's weak credit metrics, with
Moody's adjusted gross leverage at 8.3x as of the end of September
2024. Since the LBO in 2021, the company's leverage has
consistently remained outside the 5.5x – 6.5x range Moody's
consider appropriate for the B2 rating category. However, recent
quarters' earnings were significantly impacted by EUR31 million in
restructuring costs due to the Bousbecque plant closure and EUR25
million in losses from energy hedges in 2024. Moody's do not expect
these costs to recur in 2025, although Moody's still anticipate
around EUR30-40 million in other restructuring and transformational
costs, which is broadly in line with the previous year. If Moody's
were to adjust for these EUR71 million costs, Moody's adjusted
gross leverage would have been 6.9x, down from 7.5x in 2023.
Moody's expect underlying earnings improvement to continue over the
next 12-18 months. However, the recovery remains fragile in a weak
macroeconomic environment, as evidenced by a slowdown in growth in
volumes in Q3 2024, which Moody's expect to have persisted in Q4.
The outlook partially reflects uncertainty regarding the recovery
pace, although Moody's base case assumes low single-digit volume
growth this year. The company should benefit, at least temporarily,
from declining pulp costs and positive contributions from its prior
and ongoing measures to enhance profitability. High restructuring
and transformational costs (EUR140 million in 2022, EUR70 in 2023,
and around EUR100 million expected for 2024, including energy hedge
losses) have kept leverage well above 6.5x in the past. Failure to
demonstrate lower restructuring costs in the coming quarters
without materially improved underlying earnings may lead to a
rating downgrade.
Moody's positively note the company's strong free cash flow
generation in the last 12 months ending September 2024. During this
period, Moody's adjusted FCF amounted to EUR94 million, driven by
higher cash earnings, lower capex, and working capital release. The
company had been burning cash from 2021 to 2023. The cash inflow
increased Ahlstrom's cash position to EUR270 million by the end of
September 2024, up from EUR185 million in December 2023. With both
capex and working capital remaining at current levels, Moody's
expect FCF to be modestly positive over the next 12-18 month.
However, Moody's believe that given the company's growth agenda and
its private-equity ownership, it will continue targeting bolt-on
acquisitions, which may present a certain event risk for its credit
profile depending on acquisition targets and their financing.
The B2 CFR is supported by (1) Ahlstrom's leading market positions
in niche markets for high-performance fibre-based materials; (2)
its broad geographical diversification in terms of manufacturing
footprint and end-market exposure; (3) its good fundamental growth
prospects because of the growing demand for sustainable/recyclable
products; and (4) its relatively resilient underlying operating
performance, illustrated by fairly stable profitability margins in
the past.
However, the rating is constrained by (1) the company's high
Moody's-adjusted gross debt/EBITDA of 8.3x in the 12 months that
ended in September 2024; (2) its exposure to volatile input costs
such as pulp, chemicals and energy; (3) a history of having a large
amount of one-offs costs related to restructuring and portfolio
optimization since the LBO that Moody's typically do not adjust
for; and (4) event risk associated with potential bolt-on
acquisitions and a lengthy process of squeeze out of minority
shareholders following the company's delisting in 2021.
OUTLOOK
The negative outlook reflects mainly Ahlstrom's high leverage,
which has remained outside Moody's required range for the rating
since its assignment in 2021 for various reasons. Assuming a very
moderate pace of recovery over the next 12-18 months, Moody's
expect gross leverage to decline below 6.5x in 2025, with earnings
additionally benefiting from past profitability-enhancing
initiatives and lower "exceptional" costs. However, in the absence
of clear profitability improvement on a reported basis over the
coming quarters, the rating will likely be downgraded.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Positive rating pressure could arise if:
-- Moody's adjusted gross debt/EBITDA sustained below 5.5x;
-- Moody's adjusted EBITDA margin strengthening towards mid-teens
in percentage terms;
-- Positive free cash flow generation on a sustained basis.
Conversely, negative rating pressure could arise if:
-- Moody's adjusted gross debt/EBITDA remaining above 6.5x;
-- Moody's adjusted EBITDA margin sustained below 10%;
-- Moody's adjusted e EBITDA/Interest expense below 2x;
-- Weakening liquidity as a result of negative FCF, shareholder
distributions or M&A.
STRUCTURAL CONSIDERATIONS
In Moody's Loss Given Default (LGD) assessment, Moody's rank pari
passu the EUR1,017 million and the $532 million outstanding senior
secured first lien term loans maturing in February 2028 with the
EUR341 million and the $268 million outstanding senior secured
notes also maturing in February 2028 and the 6.5-year EUR325
million senior secured revolving credit facility (RCF) maturing in
August 2027, which all share the same collateral package and
guarantees from all substantial subsidiaries of the group
representing at least 80% of consolidated EBITDA. The instruments
are thus rated in line with the B2 CFR. Moody's assume a standard
recovery rate of 50% because the covenant-lite package consists of
bonds and loans.
LIQUIDITY
Moody's view Ahlstrom's liquidity profile as good. This is
reflected in EUR270 million of cash and cash equivalents at the end
of September 2024. However, EUR77 million of cash (December 2024)
was either restricted or located in countries where repatriation is
subject to local regulation and hence not immediately available to
the group. The cash sources are further complemented by the EUR325
million RCF. While there were no cash drawings under the RCF, the
company had used the facility to provide guarantees for ancillary
facilities amounting to EUR64 million as of September 2024. The RCF
contains a springing covenant set at 7.75x senior secured net
leverage (3.4x in Q3 2024), tested quarterly only when the facility
is more than 40% drawn. These sources are sufficient to cover the
cash flow seasonality. While there are no sizeable debt maturities
until 2028, when senior secured term loans and other senior secured
debt mature, the company had EUR95 million of Finish commercial
paper outstanding as of September 2024.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Paper and
Forest Products published in August 2024.
COMPANY PROFILE
Headquartered in Helsinki, Finland, Ahlstrom Holding 3 Oy
(Ahlstrom) is a global leader in combining fibers into sustainable
specialty materials. Through its 35 plants spread across 13
countries in Europe, North and South America, and Asia, the group
services more than 6,000 customers from various end markets in more
than 100 countries. Ahlstrom generated around EUR3 billion in
revenue during the 12 months that ended in September 2024 and
employed approximately 7,000 people worldwide. The company was
taken private in June 2021 by a consortium led by Bain Capital,
which holds approximately 55% of shares.
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F R A N C E
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ECOTONE HOLDCO III: Moody's Alters Outlook on 'B3' CFR to Stable
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Moody's Ratings has changed to stable from negative the outlook of
ECOTONE HoldCo III S.A.S. (Ecotone or the company), a European
leading provider of organic food. Concurrently, Moody's have
affirmed the company's B3 long-term corporate family rating, the
B3-PD probability of default rating, and assigned B3 ratings to the
proposed amended and extended EUR405 million backed senior secured
first lien term loan due 2029 and EUR65 million backed senior
secured first lien revolving credit facility (RCF) due 2029, both
borrowed by Ecotone. Upon close of the transaction, the ratings on
the existing EUR490 million backed senior secured first lien term
loan and the EUR75 million backed senior secured first lien
revolving credit facility (RCF), both due in 2026 and borrowed by
Ecotone, will be withdrawn.
"The rating action follows the company's disposal of its wholly
owned brand, Whole Earth Foods, whose proceeds will be applied to
debt reduction, along with the proposed amend and extend
transaction of its credit facilities. The amend and extend will
improve the company's liquidity and remove the refinancing risk by
extending the maturity of its debt from 2026 to 2029" says
Valentino Balletta, a Moody's Ratings Analyst and lead analyst for
Ecotone.
Governance considerations were a key driver of the rating actions.
The debt repayment following the disposal will help in deleveraging
the company's capital structure, while the amend and extend
transaction removes the refinancing risk of the RCF and term loan
B, allowing management to focus on executing its strategy.
RATINGS RATIONALE
The outlook change to stable from negative reflects the ongoing
improvements in the company's operating performance in recent
quarters and the expected benefits from both the disposal of its
wholly owned brand, Whole Earth Foods, together with the company's
proposed amend and extend transaction.
With these transactions the maturity of its existing term loan and
RCF will be extended by three years to 2029, respectively, while
the disposal will allow for EUR85 million of debt repayment,
supporting some deleveraging by approximately 0.7x on the Moody's
adjusted leverage. However, Moody's expect Ecotone's gross leverage
will remain high following the closing of the transaction, with a
Moody's-adjusted pro-forma gross leverage of around 7.3x.
The ratings affirmation and the stable outlook reflects, however
Moody's expectation that the company will reduce its gross
leverage, on a Moody's adjusted basis, below 7.0x over the next
12-18 months, mainly driven by EBITDA growth and a sustained
improvement in operating performance, supported by additional
savings tied to operational efficiency.
The company delivered a better-than-expected operating performance
in 2024, thanks to its focus on volume recovery through selective
investments in advertising and promotion (A&P), favorable product
mix towards higher margin categories, and focus on other more
profitable channels (out of home and e-commerce). The performance
was also supported by more benign market dynamics for organic and
premium sustainable products as inflation eases and consumer
sentiment improves. Sales in the fiscal year 2024 grew by 2.5%
compared to last year, mainly driven by volume increase (+1.5%).
Profitability has also improved thanks to more favorable product
mix and to operational improvements and cost savings initiative.
During the same period, the company's adjusted EBITDA increased to
EUR77 million from EUR74 million a year earlier (or EUR71 million
and EUR68 respectively, excluding the contribution from Whole Earth
Foods).
Going forward, in order to boost profitability the company aims to
increase focus on its core and high growth brands/categories and on
its main geographies, and expanding into alternative channels like
e-commerce, discounters, and out-of-home. Additionally, it will
continue to pursue cost savings through manufacturing optimization
and production efficiencies. Nevertheless, these efforts entail
some execution risks.
The rating also takes into account the company's lower-than-peer
operating margin, partially because of Ecotone's strategy to
outsource most of the production to third-party manufacturers. In
addition, the company is exposed to a degree of customer
concentration, albeit partially compensated by channel diversity.
Conversely, the rating remains supported by the company's good
market positions, particularly in France; the attractive long-term
fundamentals of the European organic and healthy food market,
supported by mega-trends such as healthy nutrition, food
intolerance awareness, and sustainability; a degree of geographical
diversification across Europe, outside its key French market; a
flexible cost structure, which helps to preserve margins and cash
generation against demand volatility; and its adequate liquidity.
LIQUIDITY
Pro forma for the proposed amend and extend transaction, Ecotone
has adequate liquidity, supported by around EUR20 million of
available cash on balance sheet expected at closing and access to a
fully undrawn EUR65 million committed revolving credit facility
(RCF) due 2029, which Moody's expect to remain undrawn over the
next 12 to 18 months.
Moody's anticipate that the free cash flow (Moody's-adjusted) will
remain positive by around EUR7 million in 2025 and EUR14 million in
2026, supported by sustained earnings growth and minimal capital
expenditure requirements.
The RCF has only one springing covenant based on senior secured net
leverage not exceeding 9.2x, tested when the facility is drawn more
than 40%. Moody's expect Ecotone to maintain adequate capacity
under this covenant.
Following the amend and extend transaction, Ecotone will not face
any debt maturities before September 2029, when its TLB is due.
STRUCTURAL CONSIDERATIONS
Pro forma for the amend and extend exercise, Ecotone's capital
structure comprises a EUR405 million first-lien term loan due 2029
and the EUR65 million first-lien RCF due 2029. The B3 ratings of
the TLB and the RCF are in line with the CFR, reflecting the fact
that these instruments rank pari passu and constitute most of the
company's debt. These facilities benefit from the same security
package, comprising pledges over shares, bank accounts and
intercompany receivables, and are guaranteed by operating companies
of the group representing at least 80% of the consolidated EBITDA.
Ecotone's B3-PD probability of default rating reflects Moody's
assumption of a 50% family recovery rate, based on the limited set
of financial covenants comprising only a springing covenant on the
RCF.
The capital structure also includes a EUR85 million shareholder
loan entering the restricted group and being lent to ECOTONE HoldCo
III S.A.S., maturing in October 2029, to which Moody's have
assigned 100% equity credit under Moody's Hybrid Equity Credit
methodology. However, the company has the ability to service its
coupon in cash, under the current documentation.
RATING OUTLOOK
The stable rating outlook reflects Moody's expectation that Ecotone
will continue to deliver moderate EBITDA improvement with a clear
focus on deleveraging in the next 12 to 18 months. The stable
outlook also assumes that the company will successfully complete
the proposed amend and extend transaction in line with the proposed
conditions, while maintaining an adequate liquidity at all times.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure could develop over time if the company
improves its profitability, leading to Moody's-adjusted debt/EBITDA
below 6.0x on a sustained basis; it generates sustainably positive
free cash flow and maintain adequate liquidity. The existence of a
shareholder loan instrument in the restricted group limits
potential upward momentum on Ecotone's rating because of the risk
that this instrument may be refinanced with debt raised within the
restricted group once sufficient financial flexibility develops.
Downward pressure on the rating could arise if the company's free
cash flow generation remains negative, including dividend payments
under Moody's definition, and its liquidity weakens; its
Moody's-adjusted debt/EBITDA does not reduce towards 7.0x; its
EBITA interest coverage ratio (Moody's-adjusted) declines below
1.0x; and the company engages in an aggressive acquisition or
financial policy, which delays any improvement in credit metrics.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
COMPANY PROFILE
ECOTONE HoldCo III S.A.S. is a European food producer with a clear
focus on organic and sustainable food products. The company
operates across several Western European countries, with France
accounting for more than half of its revenue in 2023, and holds a
diversified portfolio of brands. In the fiscal year 2024, Ecotone
reported revenue of EUR709 million and a company adjusted EBITDA of
EUR77 million (unaudited).
=============
G E R M A N Y
=============
SCHOEN KLINIK: Moody's Raises CFR to B1 & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Ratings has upgraded the long-term corporate family rating
of Schoen Klinik SE (Schön Klinik, company) to B1 from B2. At the
same time, Moody's upgraded the probability of default rating to
B1-PD from B2-PD and assigned B1 instrument ratings to the
company's proposed EUR685 million senior secured term loan B2 and
EUR180 million senior secured revolving credit facility (RCF). The
outlook was changed to stable from positive.
Proceeds from the transaction will be used to refinance existing
indebtedness and pay transaction fees.
"The upgrade reflects Schön Klinik's ongoing strong performance in
the German hospital market, despite an increasing wage environment
and full consolidation of the acquisition in 2023 which remains
being margin dilutive", says Dirk Goedde, Vice President-Senior
Analyst and lead analyst of Schön Klinik. "With the proposed
transaction, Schön Klinik addresses upcoming debt maturities well
ahead of the due date while Moody's expect a further growth in the
company's EBITDA over the next 12-18 months from tight cost control
and further efficiency measures, leading to deleveraging towards
4.0x Moody's adjusted debt to EBITDA", Mr. Goedde continued.
RATINGS RATIONALE
The B1 CFR reflects the elevated Moody's adjusted leverage of 4.6x
expected in 2024 resulting from the company's past acquisitions,
offset by the company's strong positioning in the growing German
hospital market with adjacent presence in the UK. The company's
favorable focus on mental health drives above average occupation
rates as well as its private ownership that supports cost efficient
operations leading to above market profitability.
The rating furthermore takes into account the high fixed cost base
and related industry-inherent pressure on wages with necessity to
retain staff that has accelerated since the coronavirus pandemic;
regulatory risks related to reimbursement levels of treatments and
necessity to improve quality of care and staff conditions; the
limited geographic diversification; the company's opportunistic
approach to acquiring new hospitals that could delay deleveraging.
Historically shareholder distribution were made based on
performance of the business and have not had a large impact on the
stability of free cash flow generation.
Moody's expect the company to grow revenues in the mid-single
digits in percentage terms from increasing volumes and price
increases. Moody's expect the company to maintain its solid
profitability around 12% Moody's adjusted EBITDA in the next 12-18
months leading to ongoing EBITDA-growth and driving deleveraging
towards 4.0x by the end of 2026.
The company's free cash flow generation will be partially strained
by high interest and expected severance payments during 2025.
Moody's furthermore expect the company to continue to distribute
dividends to its shareholders and, thus, forecast only limited
positive free cash flow generation in the next 12-18 months.
OUTLOOK
The stable outlook reflects the expectation that the company will
be able to manage the industry-inherent cost pressure and cash
collection cycles as well as maintain its conservative financial
policy, which will, coupled with some efficiency gains, result in
growing EBITDA. This should also lead to continued deleveraging and
free cash flow generation in the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company decreases its Moody's
adjusted debt / EBITDA sustainably below 4.5x; its Moody's adjusted
free cash flow / debt ratio remains above 5% sustainably,
Moody's-adjusted EBITA/interest moves above 2.5x on a sustained
basis and it maintains a good liquidity at any time. A further
upgrade would also require a commitment to a conservative capital
structure and shareholder remuneration in line with the Moody's
adjusted metrics.
The ratings could be downgraded if the company increases its
Moody's adjusted debt / EBITDA above 5.5x; its Moody's adjusted
free cash flow remains negative or its liquidity deteriorates.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
Governance was a driver of the action. Schön Klinik's exposure to
governance risks stem from its financial policy with a high
tolerance for leverage. This weakness is to some extent offset by
the company's strong operating track record as one of the
best-in-class clinic operators in Germany in terms of quality. It
furthermore has concentrated ownership and limited independence
representation in its board.
LIQUIDITY
Schön Klinik's liquidity is good supported by (1) EUR52 million of
cash on balance sheet at year-end 2024, (2) high availability under
the new contemplated revolving credit facility with ample headroom
against the maintenance and (3) positive free cash flow generation
forecasted going forward. The next debt maturity is the senior
secured term loan B in 2031.
STRUCTURAL CONSIDERATIONS
The B1 rating on the senior secured term loan B and RCF, in line
with the B1 CFR, reflect their pari passu ranking in the capital
structure and the upstream guarantees from material subsidiaries of
the company. The B1-PD probability of default rating, in line with
the CFR, reflects Moody's assumption of a 50% family recovery rate,
typical for bank debt structures with a limited or loose set of
financial covenants.
COVENANTS
Moody's have reviewed the marketing draft terms for the new credit
facilities. Notable terms include the following:
Guarantor coverage will be at least 80% of consolidated revenues or
total assets (determined in accordance with the credit agreement)
and include all companies representing 5% or more of consolidated
revenues or total assets. Security will be granted over key shares,
material bank accounts and key receivables.
Incremental facilities are permitted up to EUR174 million or 1.0x
consolidated EBITDA. Sale and leaseback transaction are permitted
up to EUR400 million and 20% of total assets as long as leverage
does not exceed 5.0x and 1/3 of proceeds are applied to
refinancing.
Unlimited pari passu debt is permitted up to a company defined
senior leverage ratio of 4.75x, and unlimited unsecured debt is
permitted up to 5.75x.
Unlimited restricted payments are permitted if net leverage is 4.0x
or lower, and restricted investments are permitted if total
leverage is below opening leverage.
Adjustments to Consolidated EBITDA include cost savings and
synergies including expenses relating to the Schön Comfort Program
believed to be realizable within 24 months of the relevant event.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Schoen Klinik SE, headquartered in Munich, is a leading private
hospital provider in Germany with an extended presence in the UK.
The company provides a comprehensive range of treatments in mental
health, neurology, somatic care, and rehabilitation. Established in
1985, it is primarily owned by its founding family, with a minority
stake held by private equity firm Carlyle Global Partners since
2016. Schön Klinik operates a network of 17 hospitals and employed
13,800 staff. In 2024, Schön Klinik reported preliminary revenues
of EUR1.3 billion.
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I R E L A N D
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BLACKROCK EUROPEAN XV: S&P Assigns B-(sf) Rating on Cl. F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to BlackRock
European CLO XV DAC's class A, B-1, B-2, C, D, E, and F notes. The
issuer also issued unrated subordinated notes.
The ratings reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which is bankruptcy remote.
-- The transaction's counterparty risks, which are in line with
S&P's counterparty rating framework.
Portfolio benchmarks
S&P Global Ratings weighted-average rating factor 2,764.09
Default rate dispersion 516.20
Weighted-average life (years) 4.68
Weighted-average life (years) extended
to cover the length of the reinvestment period 5.00
Obligor diversity measure 117.24
Industry diversity measure 21.50
Regional diversity measure 1.30
Transaction key metrics
Total par amount (mil. EUR) 400
Defaulted assets (mil. EUR) 0
Number of performing obligors 135
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 1.25
Actual 'AAA' weighted-average recovery (%) 37.41
Actual weighted-average spread (net of floors; %) 4.07
Actual weighted-average coupon (%) 3.73
Rationale
This is a European cash flow CLO transaction, securitizing a pool
of primarily syndicated senior secured loans or bonds. The
portfolio's reinvestment period ends five years after closing,
while the non-call period will end two years after closing.
Under the transaction documents, the rated notes pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.
S&P said, "We understand that the portfolio is well-diversified,
primarily comprising broadly syndicated speculative-grade senior
secured term loans and senior-secured bonds. Therefore, we have
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow CDOs.
"In our cash flow analysis, we modeled the EUR400 million target
par amount, the covenanted weighted-average spread of 3.85%, the
covenanted weighted-average coupon of 4.00, and the targeted
weighted-average recovery rates at all rating levels. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.
"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.
"Under our structured finance sovereign risk criteria, the
transaction's exposure to country risk is sufficiently mitigated at
the assigned ratings.
"The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.
"Our credit and cash flow analysis indicate that the available
credit enhancement for the class B-1, B-2, C, D, E, and F notes is
commensurate with higher ratings than those we have assigned.
However, as the CLO will have a reinvestment period, during which
the transaction's credit risk profile could deteriorate, we have
capped our ratings assigned to the notes."
The class A notes can withstand stresses commensurate with the
assigned rating.
S&P said, "Following our analysis of the credit, cash flow,
counterparty, operational, and legal risks, we believe that our
ratings are commensurate with the available credit enhancement for
each class of notes.
"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A to E notes
based on four hypothetical scenarios.
"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."
Environmental, social, and governance
S&P said, "We regard the exposure to environmental, social, and
governance (ESG) credit factors in the transaction as being broadly
in line with our benchmark for the sector. Primarily due to the
diversity of the assets within CLOs, the exposure to environmental
credit factors is viewed as below average, social credit factors
are below average, and governance credit factors are average. For
this transaction, the documents prohibit or limit certain assets
from being related to certain activities. Since the exclusion of
assets from these activities does not result in material
differences between the transaction and our ESG benchmark for the
sector, no specific adjustments have been made in our rating
analysis to account for any ESG-related risks or opportunities."
Ratings list
Amount Credit
Class Rating* (mil. EUR) enhancement (%) Interest rate§
A AAA (sf) 248.00 38.00 Three/six-month EURIBOR
plus 1.29%
B-1 AA (sf) 36.00 26.50 Three/six-month EURIBOR
plus 1.95%
B-2 AA (sf) 10.00 26.50 4.80%
C A (sf) 24.00 20.50 Three/six-month EURIBOR
plus 2.30%
D BBB- (sf) 26.00 14.00 Three/six-month EURIBOR
plus 3.25%
E BB- (sf) 18.00 9.50 Three/six-month EURIBOR
plus 5.70%
F B- (sf) 12.00 6.50 Three/six-month EURIBOR
plus 8.35%
Sub NR 33.00 N/A N/A
*The ratings assigned to the class A, B-1, and B-2 notes address
timely interest and ultimate principal payments. The ratings
assigned to the class C, D, E, and F notes address ultimate
interest and principal payments.
§The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.
TRINITAS EURO I: S&P Raises Class E Notes Rating to 'BB+(sf)'
-------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Trinitas Euro CLO I
DAC's class B notes to 'AAA (sf)' from 'AA (sf)', class C notes to
'AA+ (sf)' from 'A (sf)', class D notes to 'A (sf)' from 'BBB
(sf)', and class E notes to 'BB+ (sf)' from 'BB (sf)'. At the same
time, S&P affirmed its 'AAA (sf)' rating on the class A notes and
its 'B- (sf)' rating on the class F notes.
The rating actions follow the application of S&P's global corporate
CLO criteria and our credit and cash flow analysis of the
transaction based on the December 2024 payment report.
Since the transaction closed in November 2019:
-- The pool factor has decreased to 79% from almost 100%.
-- The portfolio's weighted-average rating remains at 'B'.
-- The portfolio has become more diversified, as the number of
performing obligors has increased to 120 from 104.
-- The portfolio's weighted-average life has decreased to 3.69
years from 6.06 years.
-- The percentage of 'CCC' rated assets has increased to 3.28%
from zero at closing.
Following the deleveraging of the senior notes, all classes of
notes benefit from higher levels of credit enhancement compared
with our previous review.
Credit enhancement
Current amount
Class (mil. EUR) Current (%) Closing (%)
A 143.01 48.17 38.00
B 35.00 35.48 28.00
C 21.00 27.87 22.00
D 24.50 18.99 15.00
E 17.50 12.65 10.00
F 9.50 9.21 7.29
Sub Notes 34.30 N/A N/A
N/A--Not applicable.
The scenario default rates (SDRs) have decreased for all rating
scenarios primarily due to a reduction in the portfolio's
weighted-average life.
Portfolio benchmarks
Current Closing
SPWARF 2,879.85 N/A
Default rate dispersion 538.20 N/A
Weighted-average life (years) 3.694 6.065
Obligor diversity measure 100.448 89.435
Industry diversity measure 17.732 18.877
Regional diversity measure 1.327 1.364
Defaulted assets (mil. EUR) 0.00 0.00
'AAA' SDR (%) 59.71 66.98
'AAA' WARR (%) 36.77 37.00
All figures presented in the table do not include defaulted assets.
SPWARF--S&P Global Ratings' weighted-average rating factor.
SDR--Scenario default rate. WARR--Weighted-average recovery rate.
N/A--Not applicable.
On the cash flow side:
-- The reinvestment period for the transaction ended in April
2024.
-- The class A notes have deleveraged by almost EUR74 million
since then.
-- No class of notes is currently deferring interest.
All coverage tests are passing as of the December 2024 payment
report.
In S&P's view, the portfolio is diversified across obligors,
industries, and asset characteristics.
S&P said, "Considering the improved SDRs and higher available
credit enhancement, we raised our ratings on the class B to E notes
as the available credit enhancement is now commensurate with higher
stress levels. At the same time, we affirmed our ratings on the
class A and F notes.
"Our cash flow analysis indicated higher ratings than those
currently assigned for the class D and F notes. However, we
considered the considerable portion of senior notes outstanding and
current macroeconomic conditions.
"In our view, the portfolio is granular, and well-diversified
across obligors, industries, and asset characteristics compared to
other CLO transactions we have recently rated. Hence, we have not
performed any additional scenario analysis.
"We consider the transaction's exposure to country risk to be
limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our structured finance sovereign risk criteria."
Counterparty, operational, and legal risks are adequately mitigated
in line with our criteria.
Trinitas Euro CLO I is a European cash flow CLO transaction that
securitizes loans granted to primarily speculative-grade corporate
firms. The transaction is managed by WhiteStar Asset Management
LLC.
=========
I T A L Y
=========
EFESTO BIDCO: S&P Assigns Preliminary 'B-' ICR, Outlook Positive
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B-' long-term issuer
credit rating to Efesto Bidco SpA (Forgital) and its 'B-' issue
rating to its proposed bond (co-issued with Efesto U.S. LLC., its
direct subsidiary), with the preliminary recovery rating of '4'
(rounded recovery estimate: 45%).
S&P said, "The positive outlook indicates that we could upgrade
Efesto Bidco SpA if its debt to EBITDA falls to 5.5x by 2026 and
stays below that level thereafter, and funds from operations (FFO)
cash interest coverage strengthens to about, or above, 2.5x,
alongside positive free operating cash flow (FOCF)."
Financial sponsor Stonepeak has agreed to acquire Italy-based
aero-engine parts maker Forgital for EUR1.5 billion.
To fund the transaction, Stonepeak will provide EUR795 million of
new common equity and Forgital will issue EUR760 million senior
secured notes denominated in U.S. dollars. Forgital's existing $505
million outstanding notes, issued by F-Brasile SpA, will be repaid.
Efesto Bidco will then become the rated entity in our analysis as
the group's ultimate parent company.
S&P said, "The positive outlook reflects our expectation that
Forgital will continue to exhibit a robust operating performance
through 2025-2026, with S&P Global Ratings-adjusted debt to EBITDA
remaining below 6.5x despite the transaction and increase in gross
debt." In December 2024, alternative firm Stonepeak announced that
it had agreed to acquire Forgital. The transaction will be funded
by Stonepeak providing EUR795 million of new common equity, with no
non-common equity instruments present in the group structure above
Efesto Bidco SpA. Forgital will also issue EUR760 million
equivalent of new senior secured debt denominated in U.S. dollars.
As part of the transaction, Forgital will repay its existing $505
million senior secured notes due in 2026 (issued by F-Brasile SpA).
Pro forma the proposed transaction, and assuming that the relevant
regulatory approvals are obtained, Efesto Bidco's unique liability
will be the EUR760 million equivalent senior secured debt,
denominated in U.S. dollars. In addition, Forgital will have access
to a EUR125 million multi-currency super senior revolving credit
facility (RCF), which will be undrawn at closing. Despite the new
capital structure entailing a higher amount of gross debt--S&P
Global Ratings-adjusted debt will increase to about EUR815 million
(from about EUR610 million forecast in 2024)—S&P expects that
supportive underlying market conditions and strong operating
performance will translate into meaningful EBITDA expansion, such
that debt to EBITDA remains below 6.5x over our rating horizon.
Strong underlying market conditions, coupled with increased
operating efficiencies, should support Forgital's revenue and
EBITDA expansion in 2025-2026. S&P said, "We expect domestic and
international flying hours will continue to hit record highs,
bolstering the already strong demand for new aircraft and
aftermarket services. Airbus and Boeing continue to increase their
production rates, while demand for new large commercial aircraft
engines naturally follows suit. We expect Forgital will benefit
thanks to its market position as a leading tier-two supplier on key
engine platforms, such as the Trent XWB. Forgital recently expanded
its business by winning new contracts on narrowbody engines such as
the LEAP 1A and PW1000GT, where we expect solid growth. Forgital's
top line should increase by 5%-6% in 2025 and by 10%-12% in 2026.
We also forecast some moderate contribution from the industrial
division, which remains subdued as result of general weak demand in
its end-markets."
S&P said, "We expect Forgital's profitability will continue to
improve, following a period where management has focused on
positioning the business more toward the higher-margin aerospace
segment, increased the percentage of long-term agreement (LTA)
contracts, renegotiated some unfavorable contracts, and improved
cost base efficiencies and supply-chain optimization. As such, as
volumes rise, we expect that Forgital could post margins of about
23.5% in 2025 (or about 26.5%, if we exclude approximately EUR17
million of one-offs related to this transaction) and of 27% or
higher in 2026. The LTA contract structure provides good earnings
visibility, as the agreements typically last up to 10 years, with a
high renewal rate. In addition, they typically have pass-through
mechanisms for raw material price fluctuations, which was
demonstrated by Forgital's relatively stable margins during the
recent inflationary spikes. We understand that Forgital has hedged
its energy costs until 2026.
"The positive outlook also reflects our view that FOCF will
continue to stay positive in 2025-2026 despite working capital
consumption remaining high as the business grows. We expect
Forgital to generate about EUR5 million in FOCF in 2025, despite
several cash one-offs that will affect the business as the
transaction unfolds (we include about EUR23 million in issuance
costs on top of EUR17 million in due diligence, advisory fees, and
legal costs). We expect the strong operating performance, combined
with lower growth capital expenditure (capex), to preserve the
company's FOCF generation. We understand Forgital is well invested
in, and has sufficient production capacity, to meet business
growth. As such, growth capex should progressively decrease, while
we expect maintenance capex to remain stable at 3.0%-3.5% of sales
in 2025-2026. We expect working capital consumption to remain high
in 2026 as Forgital looks to develop its business mix by expanding
into new segments (namely narrowbody and space), which have
different cash collection timelines. This, combined with an
increase in inventories linked to business growth, will result in a
working capital consumption of about EUR30 million-EUR35 million in
2026. Nevertheless, we predict high consumption in working capital,
and believe Forgital will generate FOCF of about EUR25 million in
2026 as result of the strong operating performance and the absence
of one-off items."
Forgital's size and scale, some customer/ platform concentration,
financial sponsor ownership, and tolerance for high leverage
continue to constrain our rating assessment. Despite some business
expansion and diversification achieved in the recent years toward
narrowbody platforms and space programs, we continue to view
Forgital as smaller than some rated peers and relatively more
concentrated in terms of its product suite and exposure to engine
platforms or components. Exposure to key engine platforms such as
the Trent XWB and the LEAP program accounted for about 54% of the
aerospace revenue based on the 12 months ending in September 2024
and the widebody business weights for about 37% of Forgital's
revenue. This customer concentration is partially mitigated by the
LTAs that Forgital has secured with long-standing engine maker
customers such as Safran and Rolls-Royce, which in total comprise
about 65% of Forgital's revenue. S&P said, "Our rating on Forgital
also remains constrained by its private equity ownership, which
results in a tolerance for high leverage. We expect the company to
continue its moderate stance toward acquisition spending and
dividend distributions. However, we cannot rule out potential
further incremental debt that could be added for both M&A or
shareholder remuneration."
S&P said, "The final rating will depend on our receipt and
satisfactory review of all final transaction documentation.
Accordingly, the preliminary rating should not be construed as
evidence of a final rating. If we do not receive the final
documentation within a reasonable time or if the final
documentation departs from the materials reviewed, we reserve the
right to withdraw or revise our preliminary rating. Potential
changes include but are not limited to the size of the bond and the
utilization of its proceeds, maturity, size and conditions of the
bond and the RCF, financial and other covenants, security, and
ranking.
"The positive outlook indicates that we could upgrade Efesto Bidco
over the next 12 months if S&P Global Ratings-adjusted debt to
EBITDA improves to 5.5x by 2026 and strengthens further thereafter.
Ratings upside will also hinge on funds from operations (FFO) cash
interest coverage near or above 2.5x, complemented by positive
FOCF.
"We could revise our outlook to stable if Efesto Bidco's operating
and financial performance depart from our expectations, such as S&P
Global Ratings-adjusted FOCF turning negative with no prospects of
recovery, FFO cash interest weakening from around 2.5x, and
adjusted debt to EBITDA failing to improve to about 5.5x.
"We could raise our ratings if S&P Global Ratings-adjusted debt to
EBITDA trends toward 5.5x and remains below that level thereafter,
FFO cash interest coverage remains around or above 2.5x, and the
company sustains positive FOCF."
ENGINEERING INGEGNERIA: Moody's Affirms 'B3' CFR, Outlook Stable
----------------------------------------------------------------
Moody's Ratings has affirmed Engineering Ingegneria Informatica
S.p.A.'s (Engineering or the company) corporate family rating of B3
and probability of default rating of B3-PD. Concurrently, Moody's
have affirmed the B3 instrument rating on the company's EUR485
million backed senior secured notes due 2028. The rating on the
EUR605 million senior secured notes due 2026 remains unchanged and
will be withdrawn once the upcoming refinancing is completed. The
outlook remains stable.
At the same time Moody's assigned B3 instrument ratings to
Engineering's proposed senior secured notes of EUR650 million due
2030. Proceeds from the notes issuances will be used to repay the
EUR605 million senior secured notes due in 2026 and EUR38 million
of term loan B. The maturity of the EUR195 million revolving credit
facility (RCF) will be extended to 2028 from 2026 and upsized to
EUR205 million (from EUR195 million) as part of the transaction.
RATINGS RATIONALE
The rating action reflects the company's improving operating
performance in the first nine months to September 30, 2024, driven
by the continued shift to higher value-added segments such as
Vertical Software, Digitech and Consulting and cost savings related
to the integration of Be acquisition. As a result, 9 months 2024
revenue and company adjusted EBITDA has improved by 1% and 10%
respectively compared to 9 months 2023. Leverage (Moody's adjusted
debt/EBITDA) still remained high at 8.2x for the last twelve months
(LTM) period to September 2024, from 8x as of the end of 2023.
Moody's adjusted free cash flow (FCF) to debt was still negative at
9% for the same period, due to still high non-recurring expenses.
For the full year 2024 ending 31 December 2024, Moody's expect
leverage to decline to around 7.6x based on EBITDA growth and lower
non-recurring items. FCF/debt is also expected to improve to
breakeven level on the back of lower capex and better WC management
due to improving receivables. These metrics currently position
Engineering weakly in the B3 rating category.
Moody's forecast that the company's topline will grow in low-single
digits percentages over the next 12-18 months, with
company-adjusted EBITDA being in the range of EUR290 - EUR310
million. Moody's also expect the company to reduce its
non-recurring expenses and capex as extraordinary investments in
Vertical Software Products are reaching completion. This will lead
to Moody's-adjusted leverage to improve to around 6.6x-7.2x over
the next 12-18 months, while Moody's-adjusted EBITA/interest is
expected to remain below 2.0x. Moody's-adjusted FCF to debt is
projected to improve towards 3-4% over the same period.
LIQUIDITY
Engineering's liquidity is adequate, consisting mainly of more than
EUR190 million of cash on balance expected at the end of 2024 and
EUR155 million available under the EUR195 million under the RCF on
a pro forma basis (EUR165 million available and EUR205 million
total respectively, pro forma for the increase of EUR10 million of
the RCF). Of note, Engineering repaid EUR60 million of RCF in Q4 of
2024. Moody's do not anticipate that the company will draw further
on its RCF and Moody's expect it to have ample headroom against the
springing net super senior leverage covenant, which is set at 1.7x
when the RCF is drawn by more than 40%.
STRUCTURAL CONSIDERATIONS
Post refinancing the company's capital structure will comprise of
proposed EUR650 million senior secured notes due 2030, a EUR205
million super-senior RCF due 2028 (pro forma for the EUR10 million
increase in availability), as well as EUR485 million senior secured
notes due 2028.
The security package provided to the senior secured lenders is
limited to pledges over shares, bank accounts and intercompany
receivables.
The B3 instrument rating of the senior secured notes is in line
with the CFR, reflecting the limited size of the super-senior RCF
relative to total financial debt, and taking into account the large
amount of payables that characterise the company's business model.
The B3-PD probability of default rating is at the same level as the
CFR, reflecting Moody's assumption of a 50% family recovery rate.
RATING OUTLOOK
The stable outlook reflects Moody's expectations that the company
will grow revenue and EBITDA over the next 12-18 months, that will
contribute to Moody's-adjusted leverage reduction to below 7.0x and
generate modest level of Moody's-adjusted positive FCF. The outlook
assumes that Engineering will maintain at least adequate liquidity,
not do any major dividend recapitalisation or debt funded
acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded over time if the company were to
establish a solid track record of consistent growth in revenue and
Moody's-adjusted EBITDA such that Moody's-adjusted leverage is
maintained below 6.0x, Moody's-adjusted EBITA/interest improves to
above 2.0x and Moody's-adjusted FCF/debt rises to mid-single
digits, all on a sustainable basis. An upgrade would also require
the company maintaining at least adequate liquidity.
Negative pressure on the rating could develop if the company is not
able to reduce its Moody's-adjusted leverage to below 7.5x on a
sustained basis, Moody's-adjusted EBITA / interest expense does not
remain well above 1.5x or Moody's-adjusted FCF remains negative.
Negative pressure could also arise if its liquidity weakens
materially.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Founded in 1980, Engineering is a leading provider of IT services,
software development, digital platforms in Italy, supporting
clients in their digital transformation projects. The company
generated gross revenue of EUR1.7 billion and company-adjusted
EBITDA of EUR274 million in the last twelve months ended September
30, 2024.
===================
L U X E M B O U R G
===================
MATADOR BIDCO: S&P Affirms 'B+' ICR & Alters Outlook to Negative
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Matador Bidco S.a.r.l. to
negative from stable. At the same time, S&P affirmed its 'B+'
long-term issuer credit rating on the company and its 'B+' issue
rating on its term loan B; the '4' recovery rating on the loan is
unchanged.
The negative outlook reflects our outlook on Moeve, as well as the
limited headroom on the rating that we foresee for 2025-2026.
S&P recently revised to negative its outlook on Spanish energy
company Moeve (formerly CEPSA), in which Matador Bidco S.a.r.l. has
a 38.4% stake, and whose dividends are the only source of Matador's
cash flows.
As of third-quarter 2024, Moeve's funds from operations (FFO) to
debt stood at 30%, which is materially below our benchmark of FFO
to debt of about 40% for the 'BBB-' rating.
Matador's credit quality is linked to Moeve's stand-alone credit
profile (SACP), which remains at 'bb+' but is under pressure.
S&P Global Ratings' negative outlook on Matador mirrors that on the
company's investee, Spanish energy firm Moeve. We expect Moeve's
FFO to debt to remain subdued, at 25%-32% over 2024-2026,
materially below the 40% benchmark for the rating. Following the
third-quarter update, Moeve's financial performance weakened amid
deteriorating industry conditions that eroded refining margins,
while capital expenditure remained consistently high. This,
combined with accumulation of debt to fund the Ballenoil
acquisition, kept FFO to debt at 30% as of Sept. 30, 2024. The
company's large transformation program, requiring significant
investments make improving its leverage difficult without positive
market changes, which led to the outlook revision. Because
Matador's credit quality is linked to Moeve's SACP, S&P revised its
outlook on Matador. Any downgrade to Moeve due to revised support
from Mubadala (which currently adds one notch of support to the
SACP) would not result in a downgrade to Matador.
Moeve's reduced dividend distributions will keep credit metrics
constrained for Matador over 2024-2026. S&P recognizes Moeve's
strong commitment to maintain the investment-grade rating while
continuing large investments into low carbon transformation, and
therefore expect that the company will continue to have limited
flexibility to increase dividends meaningfully in the next year.
However, Moeve has limited leeway to reduce dividends further,
given that our estimates for the company factor in dividends of
EUR180 million a year, including about EUR70 million for Matador,
over 2025-2026. This amount allows Matador to service its debt--the
dividends are its only source of cash--but with limited headroom.
Consequently, low dividends from Moeve will continue to keep
Matador's adjusted debt-to-EBITDA ratio at 8x-9x over the next few
years. The refinancing of its term loan B in July 2024 resulted in
a $21 million increase to debt but lowered the interest rate margin
by 50 basis points. S&P views the refinancing as neutral for
leverage, but positive for long-term liquidity, because the 2026
maturity moved to 2029.
S&P said, "Matador's interest coverage will remain near 1.5x.
Specifically, we estimate the ratio at 1.4x-1.7x for 2024, bearing
in mind the high interest rates during the year on Matador's
floating-rate debt and the existing hedging instruments. Generally,
we would consider an interest coverage ratio below 1.5x more
commensurate with a 'B-' rating or lower. However, in Matador's
case, we can temporarily tolerate weaker interest coverage ratios
because the company has a right to request that Moeve pay a higher
dividend under its shareholder agreement with Mubadala. Matador may
use this option if it thinks it might be unable to make interest
payments on its debt. Nevertheless, given the gradually falling
interest rates, we estimate this ratio to recover modestly, if
remaining relatively close to 1.5x in 2025-2026.
"We continue to assess Matador's corporate governance and financial
policy, as well as its partial control over dividends as positive.
Still, while Matador has some influence over most key decisions,
its ability to affect those related to annual dividends has
decreased because of cash flow being diverted to capital
expenditure at the Moeve levels for the next few years. Although
Carlyle has only minority representation on Moeve's board, both
shareholders must approve any changes to financial and dividend
policies. Nevertheless, in our view, Matador has the ability to
exercise more control over dividends than peers in similarly
structured transactions.
"The negative outlook reflects our outlook on Moeve, as well as the
limited rating headroom we foresee for the next few years."
S&P could lower the rating if:
-- S&P revised downward Moeve's SACP; or
-- Matador's interest coverage ratio stayed consistently and
materially below 1.5x.
S&P would revise the outlook on Matador to stable within the next
24 months if it revised that on Moeve to stable following its FFO
to debt improving toward 40% sustainably in 2025 and 2026, while we
saw Matador's credit measures as staying within the rating range,
with leverage below 10x and interest coverage not materially below
1.5x.
===========
S W E D E N
===========
INTRUM AB: S&P Cuts ICR to 'SD' After Missing Interest Payments
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Intrum AB (publ) to 'SD' from 'CC' and the issue ratings on its
senior unsecured notes to 'D' from 'CC'.
In parallel, Intrum has continued to make progress on its
recapitalization efforts and it received confirmation for its
Chapter 11 plan on Dec. 31, 2024, and filed for a Swedish Company
Reorganization process.
During its recapitalization process, Nordic debt collector Intrum
AB (publ) has missed paying the coupon interest on its outstanding
market debt.
Rating Action Rationale
The downgrade reflects that Intrum missed payments on the coupons
on its senior unsecured notes. During the past year Intrum has
been working on a recapitalization plan that intends to alleviate
financial pressures that affected the company. After reaching a
lock-up agreement with the majority of its note holders, Intrum
filed for a prepackaged Chapter 11 that was approved on Dec. 31,
2024. Intrum also filed for a Swedish Reorganization process in
accordance with what was stated in the negotiations with
bondholders. Following these, the company opted to miss and defer
its coupon payments on its senior unsecured notes, which under our
criteria constitutes a default. However, Intrum continues to pay
all interest on its revolving credit facility and term loan
facilities.
S&P's recovery ratings remain unchanged at '4' (40%) and it will
re-evaluate the company's creditworthiness once it emerges from its
restructuring process, which it expects to be concluded during the
second quarter of 2025 unless delayed under Swedish court
proceedings.
=====================
S W I T Z E R L A N D
=====================
GATEGROUP HOLDING: S&P Upgrades ICR to 'B-' on Improved Leverage
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on airline
caterer gategroup Holding AG to 'B-' from 'CCC+'. The positive
outlook reflects the possibility that S&P will upgrade the company
in the next 12 months if it refinances its October 2026 debt
maturities well in advance and at terms that support improvements
in its cash flow and leverage ratios, including S&P Global
Ratings-adjusted debt to EBITDA of 6.5x or lower and S&P Global
Ratings-adjusted EBITDA interest coverage of consistently above
2.0x.
Global air travel demand remains resilient.
Global air passenger traffic (measured in revenue
passenger-kilometers [RPKs]) finally outstripped pre-pandemic
(2019) levels in February 2024, as per the International Air
Transport Association (IATA), which follows traffic of 94% of
pre-pandemic levels in 2023. Total air passenger traffic in 2024
was supported by strong performances in all major markets,
particularly in the Asia-Pacific region, which was the last to lift
travel restrictions--but also the U.S. and Europe. S&P said, "In
2025, we expect the pace of the expansion in global air passenger
traffic to slow as the post-COVID-19 recovery levels off.
Specifically, we anticipate air passenger demand will be led by
strong momentum from the Asia-Pacific and Latin America regions,
with Europe and the U.S. also showing positive trends. We note that
the volume of international traffic handled by Asia-Pacific
airlines has risen extraordinarily but is still recovering (it was
about 10% below 2019 levels in September 2024 per the IATA). This
contrasts with the impressive expansion among the Latin American
carriers, which handled over 14% more traffic in September 2024
relative to 2019 levels (per the IATA)."
S&P said, "In addition, the economic outlook remains
resilient--reflected in our forecast for global GDP growth of more
than 3.0% in both 2025 and 2026 (following an expected 3.3%
expansion in 2024)--and unemployment rates remain relatively low,
which we expect will underpin robust demand for air travel.
Furthermore, we anticipate that demand for leisure travel will
endure, particularly in the premium leisure segment. We also note
that the volume of business travel is picking up but still
significantly lags pre-pandemic levels. That said, industrywide
capacity will likely remain tight because of persistent delays in
the delivery of aircraft; a shortage of jet engines and spare
parts; scarce aircraft maintenance slots; and shortage of
workforce, including pilots, across the entire aviation network.
Supply chain challenges may also constrain the growth of air
traffic volumes, noting that passenger load factors across major
regions reached record highs in 2024 (as reported by the IATA).
"The expansion in gategroup's revenue in 2024 reflected the robust
demand for air travel and the further opening of Asian markets,
combined with the benefits from customer wins and implementation of
contractual inflation-linked and extraordinary price increases. We
expect the company will continue to increase its top-line revenue
in 2025, albeit at a slower pace than over the previous year.
gategroup derives most of its revenue from onboard catering and the
sale of food and nonfood products to air travelers, therefore its
operating performance is positively correlated to increasing
passenger volumes. That said, during the pandemic gategroup
accelerated its expansion into adjacent nonaviation markets to
reduce its reliance on air travel. For example, we estimate its
deSter division, which designs and produces sustainable food
packaging for the aviation and food service industry, contributed
about CHF370 million of revenue in 2024. Furthermore, gategroup
continues to leverage its existing asset base for
nonaviation-related food preparation, including direct-to-consumer
sales. We view this strategic development as revenue enhancing and
estimate that the company's Food Solutions segment
(nonaviation-related activities, including deSter) accounted for
about 15% of its revenue in 2024.
"The pace of gategroup's revenue growth has more than offset the
receding effects of inflationary pressures on its cost base,
enabling it to improve its earnings to pre-pandemic levels. We
anticipate that the company generated about CHF5.2 billion of total
revenue in 2024, which represents a 10%-11% year-over-year increase
(from CHF4.7 billion in 2023) and surpasses its pre-pandemic levels
prior to its consolidation of LSG Group's European operations
(acquired at the end of 2020). This expansion reflects the
uninterrupted recovery in air traffic volumes (including the
medium- and long-haul traffic that typically generates higher
catering demand), complemented by gategroup's higher contractual
rates, which it has gradually pushed through to recoup cost
inflation and actively protect its margins. We anticipate that the
company expanded its S&P Global Ratings-adjusted EBITDA (after
restructuring costs) to the CHF360 million-CHF370 million range in
2024, which outpaces our previous forecast of CHF310 million-CHF330
million. This is a significant step-up from gategroup's full-year
2023 S&P Global Ratings-adjusted EBITDA of CHF211 million and is
consistent with its pre-pandemic EBITDA of CHF359 million (prior to
the LSG acquisition).
"In our 2024 base-case forecast, we assume the company's operating
cash flow fully covers its annual lease amortization and capital
expenditure (capex), enabling it to generate positive FOCF (after
lease payments) that clearly exceeds the CHF30 million-CHF35
million it generated in 2023. We assume gategroup will increase its
capex from 2024 onward (relative to the extraordinary lows it
reported over 2020-2022) to accommodate post-pandemic catch-up
investments in its operating units and equipment. We anticipate
that the company's increasing EBITDA resulted in adjusted debt to
EBITDA ratio improving to the 7.5x-7.6x range in 2024, from 12.2x
in 2023, assuming adjusted debt of about CHF2.7 billion as of the
end of 2024 (compared with CHF2.57 billion as of the end of 2023).
We add gategroup's convertible loan, pension liabilities, and
outstanding put option related to its subsidiary Servair when
calculating our adjusted debt. However, we do not deduct the
company's cash balance from our adjusted debt calculation because
it is owned by a financial sponsor.
"Our 2025-2026 base-case assumptions indicate a continued
improvement in gategroup's performance, including gradually
increasing passenger numbers, top-line volumes and rates, and
EBITDA. We forecast adjusted EBITDA (after restructuring costs)
will expand to the CHF400 million-CHF450 million range in 2025 and
subsequently to the CHF450 million-CHF500 million range in 2026.
The anticipated strengthening of gategroup's leverage ratios will
track the improvement in its earnings. As such, we forecast the
company's adjusted debt to EBITDA will decline toward about 6.5x in
2025 and further to the 6.0x-6.5x range in 2026.
"In our base case, we assume the company refinances its term loan
and revolving credit facility (RCF) due October 2026 at least one
year ahead of their maturities and at terms that support the
improving cash flow and leverage ratios, including adjusted EBITDA
interest coverage of consistently above 2.0x. Our base-case
forecast is contingent on resilient consumer sentiment and air
travel demand amid volatile macroeconomic or geopolitical
conditions, which we anticipate will support consistent EBITDA
growth that offsets gategroup's high and gradually increasing
absolute adjusted debt (because some debt instruments include
payment-in-kind interest features) and limited capacity to
significantly decrease its net debt over the short term.
"Refinancing risk constrains our rating on gategroup. We apply a
negative one-notch capital structure modifier to our 'b'
stand-alone credit profile on the company. This reflects
gategroup's mounting refinancing risk, with its debt maturities
peaking in October 2026 when close to CHF800 million equivalent of
its credit facilities (term loan and revolving credit facility)
come due. We anticipate gategroup's internal liquidity sources will
be insufficient to cover its upcoming maturities, thus the company
depends on external parties to refinance its maturing debt, which
constrains our rating at this time. We understand that gategroup is
in advanced discussions with its lenders and aims to launch a
refinancing transaction around mid-2025. We believe that a
successful refinancing would put upward pressure on our rating, all
other factors remaining equal.
"The positive outlook reflects the possibility that we will upgrade
the company in the next 12 months if it refinances its October 2026
debt maturities well ahead of time and at terms that support
improvements in its cash flow and leverage ratios.
"The absence of a timely (which we consider to be no later than 12
months before maturity) refinancing of its October 2026 debt
maturities would pressure our rating on gategroup. We would also
consider taking a negative rating action if the growth in air
passenger traffic is unexpectedly interrupted in 2025 such that it
constrains the company's EBITDA generation and causes it to
generate consistent FOCF deficits, which would markedly increase
the likelihood we will view its capital structure as
unsustainable.
"We could upgrade gategroup if it refinances its debt due October
2026 and we are confident air travel demand will be sufficiently
robust to enable the company to continue restoring its financial
strength, including adjusted debt to EBITDA trending toward 6.5x in
2025 and remaining below that level thereafter, EBITDA interest
coverage remaining above 2.0x, and FOCF staying clearly positive.
The company would also have to demonstrate continued proactive
treasury management and maintain an adequate liquidity position
before we would raise our rating."
===========================
U N I T E D K I N G D O M
===========================
ANNINGTON LIMITED: Moody's Withdraws 'Ba1' Corporate Family Rating
------------------------------------------------------------------
Moody's Ratings has withdrawn Annington Limited's Ba1 long-term
corporate family rating.
Moody's have also withdrawn Annington Funding plc's (P)Ba1 backed
senior unsecured Euro Medium Term Note (EMTN) programme rating and
the Ba1 ratings of the backed senior unsecured notes issued by
Annington Funding plc.
Prior to the withdrawal, the entity-level outlooks on Annington
Limited and Annington Funding plc were negative.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
Annington Limited is a privately held real estate company focused
on UK residential assets.
CAMELOT UK: S&P Affirms 'BB-' ICR & Alters Outlook to Negative
--------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed all its ratings on U.S-based information, analytics, and
workflow solutions provider Camelot UK Holdco Ltd. (doing business
as Clarivate), including the 'BB-' issuer credit rating.
The negative outlook reflects the risk of a downgrade if leverage
remains above 5x due to macro-economic headwinds affecting the
transactional business and operational risk related to management's
initiatives.
S&P said, "We revised our forecast of Clarivate's revenue and
EBITDA downward for 2025, and now expect leverage to remain over 5x
before gradually declining in future periods. Clarivate has
underperformed our expectations through the third quarter of 2024
because of a slowdown in transaction activity. Year-to-date
transactional revenue as of the end of the third quarter has
organically declined by 14%, which has led to a 1.5% overall
organic revenue decline. We now expect revenue for 2024 to be
between $2.5 billion and $2.6 billion and to remain relatively flat
in 2025. However, we still forecast the company to generate solid
free operating cash flow of approximately $400 million in 2024.
"Although we expect the company to continue making share
repurchases, we believe that management will have a balanced
approach to capital allocation.
"Clarivate has recently announced a share authorization program of
$500 million that runs through Dec. 31, 2026. The company purchased
$200 million in shares in the second half of 2024. We believe that
management will continue to take an opportunistic approach to share
repurchases and we assume modest levels of share buybacks over the
next 12 months. However, we also expect management to allocate a
large portion of the company's free operating cash flow toward
reinvestment in the business to enhance its product offering. The
company is planning on building out its customer success team to
improve renewal rates. Finally, we assume a modest level of
term-loan prepayment because we believe the company will look to
reduce its floating-rate debt exposure.
"We believe the company will continue its acquisitive strategy.
While potential future acquisitions may enhance the scale or
diversification of the business, we note the company has partially
funded its past three acquisitions of Decisions Resources Group
(DRG), CPA Global, and ProQuest with debt and debt-like securities.
We believe the ultimate impact on the company's future leverage
profile will greatly depend on how it chooses to fund future
acquisitions by using a mix of equity, debt, or debt-like
securities. In addition to the mix of debt funding, we also
highlight that ongoing acquisition activity may increase the risk
of operational missteps."
Clarivate's technology-enabled data offerings are diverse, and the
subscription business provides good revenue predictability, which
has partially offset the declines in the transaction business.
S&P said, "While we expect a 1%-3% organic revenue decline in 2024
due to weakness in transactional revenue, the subscription business
was a reliable source of revenue, with modest growth through the
first nine months of 2024. Approximately 80% of the company's
revenue is subscription based, and we believe new management will
focus on increasing this reoccurring revenue. We view the
subscription business as favorable because it increases the
predictability of revenue and reduces the risk of substantial
operating performance declines due to events such as macro-economic
headwinds and client losses." Clarivate's Academia & Government
segment, which comprised nearly half of revenue in the first nine
months of 2024, provides products and services to organizations
that plan, fund, implement, and use education and research at a
global, national, institutional, and individual level. The
Intellectual Property segment, comprising slightly over one-third
of the company's revenue, provides intellectual property management
services, including patent, trademark, and domain services and
expertise. The Life Sciences & Healthcare segment, comprising
roughly 17% of total revenue, includes products and solutions that
provide insight and foresight across the drug and device lifecycle
for life sciences and health care organizations. In total, the
company serves a diverse array of clients, roughly 50,000, in over
180 countries."
The negative outlook reflects the risk of a downgrade if leverage
remains above 5x due to macro-economic headwinds affecting the
transactional business and operational risk related to management
initiatives.
S&P could lower the rating if it expected leverage to remain above
5x due to:
-- A substantial pullback in transactional activity or operational
missteps that reduce EBITDA and cash flow generation,
-- Substantial shareholder rewarding activities, or
-- Partially debt-funded acquisitions.
S&P could revise the outlook to stable if:
-- S&P anticipated the company would reduce leverage below 5x and
sustain it at that level, even after incorporating potential future
acquisitions and shareholder returns;
-- Organic revenue growth resumes following managements
initiatives; and
-- The company announces a publicly stated conservative financial
policy that supports an S&P Global Ratings-adjusted leverage target
of below 5x.
COMMUNITY & BUSINESS: Begbies Traynor Named as Administrators
-------------------------------------------------------------
Community & Business Partners CIC was placed into administration
proceedings in the High Court of Justice Business and Property
Courts in Manchester, Insolvency and Companies List (ChD), Court
Number: CR-2025-MAN-000064, and Keeley Lord and Christopher James
Lawton of Begbies Traynor (Central) LLP were appointed as
administrators on Jan. 22, 2025.
Community & Business [trading as Community & Business Partners CIC;
SAMS & Blossoms] engages in an ethical, diverse organisation
empowering communities and businesses.
Its registered office and principal trading address is at Room 7,
Energy Zone, Newfield Drive, Blackburn, BB2 3UA.
The joint administrators can be reached at:
Keeley Lord
Christopher James Lawton
Begbies Traynor (Central) LLP
2-3 Winckley Court, Chapel Street
Preston, PR1 8BU
Any person who requires further information may contact:
Sharon Gregory
Begbies Traynor (Central) LLP
E-mail: sharon.gregory@btguk.com
Tel No: 01772 202000
HOWDEN GROUP: S&P Affirms 'B' ICR on Strong Organic Growth
----------------------------------------------------------
S&P Global Ratings affirmed its 'B' ratings on U.K.-based insurance
broker Howden Group Holdings Ltd. (Howden) and its financing
subsidiaries. S&P also affirmed its 'B' issue ratings and '3'
recovery ratings on the group's existing first-lien term loans loan
and senior secured notes (SSNs), along with its 'CCC+' issue rating
and '6' recovery rating on the $500 million senior unsecured notes
(SUN).
S&P said, "In addition to the strong organic growth, our stable
outlook indicates our expectation that Howden will adopt a more
conservative financial policy while pursuing future acquisitions.
This should support deleveraging, lower exceptional costs, and
support strong FOCF generation in line with a 'B' rating.
"We anticipate that Howden's credit measures will remain in line
with our expectations for a 'B' rating. Despite strong topline
growth of 22% for fiscal 2024, S&P Global Ratings-adjusted leverage
for fiscal 2024 is elevated at 13.9x (13.6x as of fiscal 2023). The
group completed 65 acquisitions and spent about $1 billion on
acquisitions. S&P Global Ratings-adjusted EBITDA margins stood at
17% and were affected by significant costs related to integration
and transformation projects, new hires in the reinsurance business,
and other nonrecurring expenses related to mergers and acquisitions
(M&A). The group continued to incur these costs, which we had
previously anticipated to subside for fiscal 2024, due to ongoing
M&A and some transformation projects. Furthermore, some of the key
acquisitions that closed in 2024 also closed at a high fully
debt-funded multiple and contributed to lower fiscal 2024 earnings
compared with our previous expectations.
"However, we forecast profitability to rebound in 2025 thanks to
lower one-off costs and new initiatives losses, however, there is
very limited headroom for underperformance under our current
rating. We anticipate total revenue of GBP3.1 billion - GBP3.3
billion in fiscal year 2025, supported by strong organic growth
from strengthened broking and reinsurance businesses on the back of
new contract wins and strong renewals. We anticipate that the group
will incur lower one-off costs, along with minimal integration and
transformation project costs. Therefore, we forecast S&P Global
Ratings-adjusted EBITDA to improve to 25%-26% in 2025, further
supported by strong organic growth that stems from investments in
new initiatives from the previous year, coupled with full year
contribution from acquisitions closed in 2024. This should result
in the S&P Global Ratings-adjusted debt to EBITDA decreasing to
about 8.0x-9.0x by year-end 2025 and improving further thereafter.
We also expect overall cash interest payments of GBP420 million -
GBP430 million over the next 12 months, leading to an improvement
in the funds from operations (FFO) cash interest coverage ratio to
2.1x by fiscal 2025, from the depressed levels of 1.1x in 2024,
benefiting from the repricing transactions executed in 2024 coupled
with savings from interest rate hedges in place.
"We forecast FOCF generation to turn positive in fiscal 2025, after
remaining broadly negative in 2024. FOCF remained negative at
GBP353 million. This mostly stems from higher interest costs from
incremental debt issuance, negative working capital outflows, and
somewhat increased capital expenditure (capex) in 2024. In addition
to exceptional costs of about GBP184 million, FOCF was also
affected by one-time litigation costs of about GBP60 million
related to Guy Carpenter, (already expensed in fiscal 2023).
However, we forecast that Howden will generate about GBP240
million-GBP250 million in 2025, supported by lower exceptionals,
full-year EBITDA contributions from completed acquisitions in 2024,
and some interest cost savings due to repricing. We also anticipate
lower capex to support recurring investments and growth plans.
"Our current rating reflects Howden's conservative financial policy
going forward. Fiscal 2023 and 2024 have been transformative years
as Howden continues to pursue material M&A. While Howden received
an equity injection of about GBP1 billion to fund transformative
acquisition of TigerRisk Partners (UK) Ltd. in fiscal 2023, most of
the acquisitions in 2024 were largely debt funded (with some
component of roll-over equity in larger deals). Also, high
acquisition multiples for some of the larger deals and exceptional
costs continue to keep leverage elevated. While we do not rule out
the possibility of acquisitions in the near future, we think that
Howden will adopt a relatively more conservative financial policy
while pursuing these acquisitions and future M&A is unlikely to
result in a material increase in leverage or exceptional costs.
"In addition to the strong organic growth, the stable outlook
indicates our expectation that Howden will adopt a relatively more
conservative financial policy while pursuing future acquisitions.
This should support deleveraging, lower exceptional costs, and
support strong FOCF generation in line with a 'B' rating."
S&P could consider lowering the rating on Howden if:
-- The group fails to adopt a conservative financial policy, slows
down on acquisitions, and undertakes material debt-financed M&A,
which will result in delayed deleveraging and persistently weak
credit metrics;
-- Howden continues to incur higher-than-expected exceptional
costs or has difficulties integrating the completed acquisitions in
2024; and
-- FOCF fails to turn positive in fiscal 2025 and we no longer
forecast FFO cash interest to recover to about 2.0x on a sustained
basis.
S&P considers an upgrade unlikely over the short term, given the
group's core strategy of debt-funded M&As and its high leverage
tolerance. Yet, S&P could consider an upgrade if the group:
-- Improves its credit metrics, in line with a stronger financial
risk profile, and there is a change in its financial policy that
underpins credit metrics at these levels; and
-- Increases its margins and scale; while cementing a dominant
position in the relatively fragmented markets it operates in.
INSPIRED EDUCATION: S&P Rates New EUR300MM Term Loan Add-On 'B'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating to the EUR300
million proposed term loan add-on, due in 2031, to be issued by
Inspired Finco Holdings Ltd., a subsidiary of Inspired Education
Holding Ltd. (B/Stable/--). S&P assigned a '3' recovery rating to
this debt, indicating its expectation of meaningful recovery
prospects (50%-70%; rounded estimate: 60%) for debtholders in the
event of a payment default. The issue and recovery ratings are
subject to our review of the final documentation.
In addition to this, the company will amend and extend its existing
term loans, resulting in a capital structure comprising EUR1,995
million senior secured term loan maturing in February 2031. All
term loan tranches will be senior secured and rank pari passu in a
hypothetical default scenario.
The Inspired group intends to use the proceeds of the add-on to
fund the acquisition of new schools and to continue to invest in
its growth strategy, including greenfield projects.
The additional debt will lengthen the group's deleveraging path,
such that we now expect the group to finish fiscal 2025 (ending
Aug. 31, 2025) with S&P Global Ratings-adjusted debt to EBITDA at
about 6.5x, above our previous expectation of 5.3x, following the
increase in fiscal 2024 toward 6.5x. The Inspired group is strongly
investing in capital expenditure (capex), resulting in negative
free operating cash flow generation. However, liquidity remains
adequate at all times in our forecast, thanks to healthy cash
balances above EUR200 million and a fully available EUR145 million
revolving credit facility (RCF), which is expected to be extended
to May 2028.
Issue Ratings - Recovery Analysis
Key analytical factors
-- The multicurrency EUR1,995 million senior secured term loans
(including the proposed EUR300 million add-on) due in 2031 are
rated 'B' with a '3' recovery rating. The recovery rating reflects
S&P's expectation of about 60% recovery in a default scenario.
-- In S&P's hypothetical default scenario, S&P assumes a
significant deterioration in the private school sector due to
overcapacity arising from increased competition from new entrants
and a significant weakening of foreign exchange rates constraining
demand in key emerging markets.
-- The group holds freehold ownership of some of its schools,
although these properties are not directly provided as security for
the credit facility. The security package will comprise shares in
Inspired Finco Holdings and the group's material subsidiaries,
pledges over material bank accounts, and intercompany receivables.
The guarantor group comprises 80% of the group's EBITDA.
-- S&P values the group as a going concern, given its growing
network of over 118 schools in 26 countries, expansion through
acquisitions and greenfield projects, and a track record of
successful integration of these and good profitability within the
private education sector.
Simulated default assumptions
-- Year of default: 2028
-- Jurisdiction: U.K.
Simplified waterfall
-- EBITDA at emergence: EUR231 million
-- Implied enterprise value multiple: 6.5x (a higher multiple than
the standard for the business and consumer services sector due to
relative revenue visibility and well-recognized brand name)
-- Gross enterprise value at default: EUR1.5 billion
-- Net enterprise value after administrative costs (5%) and
priority claims: EUR1.43 billion
-- Priority claims: About EUR100 million
-- Estimated first-lien claims: EUR2.2 billion*
-- Recovery rating: 3 (50%-70%; rounded estimate 60%).
*All debt amounts include six months of prepetition interest. The
RCF is assumed 85% drawn at default.
JUPITER MORTGAGE 1: S&P Cuts Class E Notes Rating to 'B+(sf)'
-------------------------------------------------------------
S&P Global Ratings lowered to 'BBB (sf)' from 'BBB+ (sf)' and to
'B+ (sf)' from 'BB (sf)' its credit ratings on Jupiter Mortgage
No.1 PLC's class D-Dfrd and E-Dfrd notes, respectively. At the same
time, S&P affirmed its 'AAA (sf)', 'AAA (sf)', 'AA (sf)', 'A (sf)',
and 'CCC (sf)' ratings on the class A Loan Note and class A,
B-Dfrd, C-Dfrd, and F-Dfrd notes, respectively.
The rating actions reflect the transaction's deterioration in
performance since closing. Total arrears, as of September 2024,
stand at 24.0%, up from 20.1% at closing. Arrears of greater than
or equal to 90 days currently stand at 18.2%, compared with 12.6%
at closing. Both metrics are below S&P's U.K. nonconforming RMBS
index for pre-2014 originations, where total arrears currently
stand at 28.2% and severe arrears stand at 20.9%.
S&P said, "The proportion of defaulted loans or loans past maturity
where we assume 100% foreclosure frequency currently stands at
11.1%, compared to 7.1% at closing. For loans past due within the
last 12 months, we have seen a reduction of approximately seven
basis points in current balance. We have not applied 100%
foreclosure frequency to these loans."
The slight increase in credit enhancement for the asset-backed
notes--driven by prepayments and the transaction's sequential
amortization--is not sufficient to offset the rise in arrears on
the cashflow output for the class D-Dfrd and E-Dfrd notes.
S&P said, "Since closing, our weighted-average foreclosure
frequency (WAFF) assumptions have increased at all rating levels,
reflecting the elevated arrears and higher portion of defaulted
loans or loans past maturity. The rise in arrears also reduces the
seasoning benefit to the pool, which further increases the WAFF.
"We have reduced our originator adjustment from that applied at
closing. Our originator adjustment at closing in part reflected our
view of a future deterioration in arrears for the securitized
assets. Given that the rise in arrears that we previously projected
has materialized, we have reduced the originator adjustment
accordingly. Our current originator adjustment continues to reflect
our expectations of future collateral performance, but also
considers the arrears that we previously projected materializing."
The required credit coverage has increased at all rating levels.
Table 1
Portfolio WAFF and WALS
Base foreclosure
frequency component
for an archetypical
Credit U.K. mortgage
Rating level WAFF (%) WALS (%) coverage (%) loan pool (%)
AAA 43.90 35.13 15.42 12.00
AA 38.39 27.51 10.56 8.00
A 35.33 15.93 5.63 6.00
BBB 31.99 10.25 3.28 4.00
BB 28.43 7.00 1.99 2.00
B 27.51 4.76 1.31 1.50
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
S&P's credit and cash flow results indicate that the available
credit enhancement for the class A Loan Note and class A, B-Dfrd,
and C-Dfrd notes remains commensurate with the assigned ratings.
S&P therefore affirmed its ratings on these classes of notes.
The downgrades of the class D-Dfrd and E-Dfrd notes reflect the
deterioration in these notes' cash flow results due to the
increased arrears and loans past maturity.
S&P said, "The class F-Dfrd notes continue to face shortfalls under
our standard cash flow analysis at the 'B' rating level. Therefore,
we applied our 'CCC' criteria to assess if either a rating of 'B-'
or a rating in the 'CCC' category would be appropriate. Our 'CCC'
rating criteria specify the need to assess whether there is any
reliance on favorable business, financial, and economic conditions
to meet the payment of interest and principal.
"In our steady state scenario, we increased our prepayment
assumptions in our 'low' interest rate scenario based on the
observed prepayment level, stressed actual fees in our cash flow
analysis, and did not apply spread compression.
"We therefore affirmed our 'CCC (sf)' rating on the class F-Dfrd
notes. We consider that this tranche is reliant on favorable
business, financial, and economic conditions to meet the payment of
interest and principal."
Macroeconomic forecasts and forward-looking analysis
S&P said, "We expect U.K. inflation to remain above the Bank of
England's 2% target in 2025, even though inflation has been moving
back toward the target quicker than expected. We forecast the
year-on-year change in house prices in Q4 2024 to be 1.4%.
"We consider the borrowers in this transaction to be nonconforming
and as such generally less resilient to inflationary pressure than
prime borrowers. At the same time, 100% of the borrowers are paying
a floating rate of interest and so have been affected by rate
rises.
"Given our current macroeconomic forecasts and forward-looking view
of the U.K. residential mortgage market, we have performed
additional sensitivities relating to higher levels of defaults due
to increased arrears. We have also performed additional
sensitivities with extended recovery timings due to the delays we
have observed in repossession owing to court backlogs in the U.K.
and the repossession grace period announced by the U.K. government
under the Mortgage Charter.
"We therefore ran eight scenarios with increased defaults and
higher loss severities of up to 30%. The results of the sensitivity
analysis indicate a deterioration that is in line with the credit
stability considerations in our rating definitions.
"While there are failures in the sensitivity to extended recovery
timings, these failures are limited in both size and the number of
failing scenarios. We do not expect the recovery timings to be
elevated for the transaction's life."
Jupiter Mortgages No. 1 is backed by a pool of legacy nonconforming
owner-occupied and buy-to-let mortgage loans secured on properties
in the U.K.
MERLIN ENTERTAINMENTS: S&P Rates New $410MM Sr. Secured Notes 'B'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating to the $410
million proposed senior secured notes, due in 2032, to be issued by
Motion Finco S.a r.l., a subsidiary of global theme park operator
Merlin Entertainments (Motion Midco Ltd.) (B-/Stable/--). S&P
assigned a '2' recovery rating to this debt, indicating its
expectation of meaningful recovery prospects (70%-90%; rounded
estimate: 70%) for debtholders in the event of a payment default.
The recovery rating considers the proposed notes will rank pari
passu with the group's senior secured debt consisting of $1.38
billion and EUR1.02 billion term loan B (TLB), EUR700 million
senior secured notes due 2030, $500 million senior secured notes
due in 2031, and GBP428 million revolving credit facility maturing
in 2029. In addition to this, the group has subordinated debt
instruments of $410 million and EUR370 million senior notes due
2027. The issue and recovery ratings are subject to our review of
the final documentation.
Merlin intends to use the proceeds to repay in full the $400
million senior secured notes maturing in 2026 and S&P expects the
notes' documentation to be fully in line with that of the existing
senior secured notes.
The proposed transaction does not have any major impact on the
group's credit metrics as the newly proposed notes will refinance
the existing debt. Thus, S&P forecasts the credit metrics to be
largely in line with its previously published base case.
MOTION MIDCO: Planned Notes Issuance No Impact on Moody's 'B3' CFR
------------------------------------------------------------------
Moody's Ratings has said that leading global operator of visitor
attractions Motion Midco Limited's (Merlin or the company) B3 long
term corporate family rating and B3-PD probability of default
rating are unaffected by the planned backed senior secured notes
issuance. Moody's have assigned B2 ratings to the proposed new
seven-year $410 million backed senior secured notes issued by
Motion Finco S.A.R.L. The stable outlook is unaffected by this
rating action.
The B2 instrument ratings of the backed senior secured notes issued
by Merlin Entertainment Limited and the backed senior secured
notes, senior secured term loans (tranche B) and the senior secured
revolving credit facility (RCF) issued by Motion Finco S.A.R.L are
also unaffected. Furthermore, the Caa2 instrument ratings of the
backed senior unsecured notes issued by Motion Bondco DAC are
unaffected.
RATINGS RATIONALE
The planned transaction is largely leverage neutral with proceeds
from the issuance primarily used to repay $400 million backed
senior secured notes due June 2026 issued by Merlin Entertainment
Limited and for paying transaction-related costs. Positively, the
planned refinancing extends the debt maturity profile.
In the twelve months leading up to September 30, 2024,
Moody's-adjusted Debt/EBITDA was around 9x while Moody's- adjusted
EBITA / interest expense was 1.1x.
The new planned backed senior secured notes issued Motion Finco
S.A.R.L will have the same ranking, security, guarantees, and
covenants as the existing notes.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Governance risks taken into consideration in Merlin's credit
profile include its private equity ownership structure that often
results in higher tolerance for leverage. Nevertheless, Moody's
view Merlin's ownership structure to have a longer investment
horizon. Kirkbi Invest A/S (KIRKBI A/S), which owns c.50% of the
company, is Merlin's partner and a major investor in the company
for almost 15 years. KIRKBI has been increasingly relying on Merlin
as one of the major avenues to promote its LEGO brand and hence is
interested in Merlin's long-term development.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook is based on the assumption that operating
performance will improve over the next 18 months, leading to better
credit metrics that align with current rating expectations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade the company's rating if Merlin maintains
solid operating performance and profitability leading to (1)
Moody's-adjusted Debt/EBITDA towards 7x and (2) Moody's- adjusted
EBITA/interest expense above 1.5x.
Moody's could downgrade Merlin's ratings if persistently weak
operating performance results in (1) materially weaker liquidity,
or (2) free cash flow remaining persistently negative, or (3)
leverage remaining significantly above 9x or (4) Moody's- adjusted
EBITA/interest expense below 1x.
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Motion Midco Limited is the holding company for Merlin
Entertainment Limited. Merlin, which is based in Dorset, UK, is the
largest European and second-largest global operator of visitor
attractions in terms of visitor numbers. The company operates 141
attractions and 5,342 rooms in 23 countries across four continents
and generated GBP2.13 billion in revenue in 2023, and attracted
62.1 million visitors.
Merlin is owned by a group of investors, comprising KIRKBI A/S
(47.5%), Blackstone (32%) and Canada Pension Plan Investment Board
(15.5%). KIRKBI A/S, the private holding and investment company of
the Kirk Kristiansen family, aims to secure a sustainable future
for the family's ownership of the LEGO brand. It concentrates on
protecting, developing, and leveraging the LEGO brand across all
entities bearing the LEGO name.
POLARIS PLC 2025-1: S&P Gives Prelim. B- Rating on Class X Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Polaris 2025-1 PLC's class A to F-Dfrd and X-Dfrd notes. At
closing, the issuer will also issue unrated class Z notes.
Polaris 2025-1 is an RMBS transaction securitizing a portfolio of
owner-occupied mortgage loans secured over U.K. properties.
This is the ninth first-lien RMBS transaction originated by UK
Mortgage Lending Ltd. that we have rated.
The loans in the pool were originated between 2021 and 2024 by UK
Mortgage Lending Ltd.
The collateral comprises complex-income borrowers, borrowers with
immature credit profiles, and borrowers with credit impairments,
and there is a high exposure to owner-occupied mortgages advanced
to self-employed borrowers (30.0%) and owner-occupied mortgages
advanced to first-time buyers (37.5%).
Product switches are permitted under this transaction, subject to
certain conditions being met. The aggregate current balance of all
product switch loans cannot exceed 25% of the pool as of closing.
The transaction has no general reserve fund. Liquidity support for
the class A and B-Dfrd notes is provided by the liquidity reserve
fund. Hence, for the other rated notes where timely interest must
be paid once they become the most senior class outstanding, there
is no liquidity support available. However, principal receipts can
be used to pay interest, which may provide liquidity.
The transaction incorporates a swap to hedge the mismatch between
the notes, most of which (99.3%) pay a coupon based on the
compounded daily Sterling Overnight Index Average rate, and loans,
which pay fixed-rate interest before reversion.
Based on S&P's initial analysis, it does not anticipate any rating
constraints under its counterparty, operational risk, or structured
finance sovereign risk criteria.
Preliminary ratings
Class Preliminary rating Class size (%)
A AAA (sf) 85.5
B-Dfrd AA (sf) 5.5
C-Dfrd A (sf) 4.1
D-Dfrd A- (sf) 2.25
E-Dfrd BBB- (sf) 1.3
F-Dfrd BB (sf) 1
Z NR 0.35
X-Dfrd B- (sf) 2.25
NR--Not rated.
REDBOOKINTERNATIONAL LTD: James Cowper Named as Administrators
--------------------------------------------------------------
Redbookinternational Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Insolvency and Companies List (ChD),
Court Number: CR-2025-000128, and Paul Michael Davies and Sandra
Lillian Mundy of James Cowper LLP were appointed as administrators
on Jan. 21, 2025.
Redbookinternational is in the construction industry. Its
registered office is at 24/25 The Shard, London Bridge Street,
London, SE1 9SG
The joint administrators can be reached at:
Paul Michael Davis
Sandra Lillian Mundy
James Cowper LLP
The White Building
1-4 Cumberland Place
Southampton SO15 2NP
For further details, contact:
Elizabeth Felicio
Tel No: 02039630534
Email: efelicio@jamescowper.co.uk
===============
X X X X X X X X
===============
[] BOND PRICING: For the Week January 27 to January 31, 2025
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
Altice France Holdi 10.500 5/15/2027 USD 30.478
Cabonline Group Hol 11.937 4/19/2029 SEK 40.000
IOG Plc 12.089 9/22/2025 EUR 0.295
Ferralum Metals Gro 10.00012/30/2026 EUR 29.350
Tinkoff Bank JSC Vi 11.002 USD 42.875
NCO Invest SA 10.00012/30/2026 EUR 0.152
NCO Invest SA 10.00012/30/2026 EUR 0.152
Fastator AB 12.500 9/26/2025 SEK 37.250
Kvalitena AB publ 10.067 4/2/2024 SEK 45.750
Fastator AB 12.500 9/25/2026 SEK 40.000
Marginalen Bank Ban 11.457 SEK 28.414
UkrLandFarming PLC 10.875 3/26/2018 USD 1.625
Privatbank CJSC Via 11.000 2/9/2021 USD 0.500
Privatbank CJSC Via 10.250 1/23/2018 USD 3.584
Altice France Holdi 10.500 5/15/2027 USD 30.367
Fastator AB 12.500 9/24/2027 SEK 40.119
Plusplus Capital Fi 11.000 7/29/2026 EUR 8.445
Bilt Paper BV 10.360 USD 1.957
Avangardco Investme 10.00010/29/2018 USD 0.186
Bulgaria Steel Fina 12.000 5/4/2013 EUR 0.216
Sidetur Finance BV 10.000 4/20/2016 USD 0.909
Oscar Properties Ho 11.270 7/5/2024 SEK 0.077
Phosphorus Holdco P 10.000 4/1/2019 GBP 0.473
Transcapitalbank JS 10.000 USD 1.450
Privatbank CJSC Via 10.875 2/28/2018 USD 4.548
R-Logitech Finance 10.250 9/26/2027 EUR 5.068
Goldman Sachs Inter 16.288 3/17/2027 USD 25.460
Elli Investments Lt 12.250 6/15/2020 GBP 0.339
Societe Generale SA 20.000 7/21/2026 USD 4.500
UniCredit Bank GmbH 10.700 2/3/2025 EUR 7.750
UkrLandFarming PLC 10.875 3/26/2018 USD 1.625
NTRP Via Interpipe 10.250 8/2/2017 USD 1.002
Landesbank Baden-Wu 11.000 1/2/2026 EUR 16.170
KPNQwest NV 10.000 3/15/2012 EUR 0.423
Lehman Brothers Tre 14.900 9/15/2008 EUR 0.100
Bulgaria Steel Fina 12.000 5/4/2013 EUR 0.216
UniCredit Bank GmbH 12.250 2/28/2025 EUR 38.690
Raiffeisen Schweiz 16.000 7/8/2025 CHF 44.830
Swissquote Bank Eur 20.280 3/11/2025 USD 50.090
Bank Vontobel AG 26.000 3/5/2025 CHF 27.300
Zurcher Kantonalban 27.000 5/14/2025 USD 50.550
Societe Generale SA 11.000 7/14/2026 USD 17.000
Societe Generale SA 17.800 2/12/2026 USD 45.466
Leonteq Securities 22.000 3/28/2025 CHF 50.800
BNP Paribas Issuanc 20.000 9/18/2026 EUR 20.000
Ameriabank CJSC 10.000 2/20/2025 AMD 9.749
Serica Energy Chino 12.500 9/27/2019 USD 1.500
Phosphorus Holdco P 10.000 4/1/2019 GBP 0.473
Petromena ASA 10.85011/19/2018 USD 0.622
Elli Investments Lt 12.250 6/15/2020 GBP 0.339
Bilt Paper BV 10.360 USD 1.957
Banco Espirito Sant 10.000 12/6/2021 EUR 0.058
Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216
JP Morgan Structure 10.000 6/26/2026 EUR 0.876
JP Morgan Structure 13.25011/28/2025 EUR 1.047
Bank Vontobel AG 20.000 7/31/2025 CHF 46.000
JP Morgan Structure 17.75012/30/2025 EUR 1.040
Basler Kantonalbank 16.00010/15/2025 CHF 44.250
JP Morgan Structure 16.000 9/26/2025 EUR 1.026
Raiffeisen Schweiz 18.000 7/15/2025 CHF 41.720
Leonteq Securities 16.40010/15/2025 CHF 44.090
Bank Vontobel AG 11.000 8/11/2025 CHF 49.600
Basler Kantonalbank 14.200 9/17/2025 CHF 37.690
DZ Bank AG Deutsche 16.000 6/27/2025 EUR 42.270
Vontobel Financial 24.500 9/26/2025 EUR 49.320
Swissquote Bank SA 24.070 5/6/2025 CHF 29.210
Bank Vontobel AG 25.000 4/29/2025 CHF 40.800
Landesbank Baden-Wu 10.500 4/24/2026 EUR 18.060
Landesbank Baden-Wu 11.500 4/24/2026 EUR 18.780
Landesbank Baden-Wu 13.000 4/24/2026 EUR 20.430
Bank Vontobel AG 11.000 4/29/2025 CHF 25.700
UBS AG/London 15.000 4/7/2025 USD 38.350
Raiffeisen Schweiz 16.000 7/4/2025 CHF 29.960
Swissquote Bank Eur 19.340 8/5/2025 USD 41.790
Bank Julius Baer & 14.000 6/4/2025 CHF 33.350
Corner Banca SA 16.800 1/12/2026 USD 49.250
DZ Bank AG Deutsche 18.900 3/28/2025 EUR 35.530
DZ Bank AG Deutsche 18.300 3/28/2025 EUR 9.010
DZ Bank AG Deutsche 23.600 3/28/2025 EUR 48.940
DZ Bank AG Deutsche 15.000 3/28/2025 EUR 9.590
DZ Bank AG Deutsche 21.200 3/28/2025 EUR 32.100
Zurcher Kantonalban 11.350 2/21/2025 CHF 48.130
DZ Bank AG Deutsche 10.500 3/28/2025 EUR 47.200
Leonteq Securities 20.800 2/5/2025 CHF 37.500
Leonteq Securities 12.000 8/5/2025 CHF 31.480
DZ Bank AG Deutsche 11.050 5/23/2025 EUR 44.650
Vontobel Financial 23.250 6/27/2025 EUR 40.210
Bank Vontobel AG 15.00010/14/2025 USD 44.100
Leonteq Securities 15.400 7/1/2025 CHF 41.440
Bank Julius Baer & 18.500 7/2/2025 CHF 42.750
DZ Bank AG Deutsche 23.600 3/28/2025 EUR 29.440
Bank Vontobel AG 14.000 6/23/2025 CHF 39.200
Corner Banca SA 18.800 6/26/2025 CHF 43.420
Swissquote Bank Eur 17.590 4/22/2025 USD 37.000
Leonteq Securities 17.200 9/24/2025 CHF 45.240
Vontobel Financial 18.500 6/27/2025 EUR 43.360
Swissquote Bank SA 14.960 7/1/2025 CHF 38.040
Landesbank Baden-Wu 16.500 4/28/2025 EUR 14.270
Landesbank Baden-Wu 10.500 2/28/2025 EUR 44.410
Landesbank Baden-Wu 11.500 2/28/2025 EUR 14.400
Landesbank Baden-Wu 15.000 2/28/2025 EUR 12.450
Landesbank Baden-Wu 19.000 2/28/2025 EUR 11.180
Leonteq Securities 10.500 5/15/2025 CHF 47.400
DZ Bank AG Deutsche 13.200 3/28/2025 EUR 31.850
DZ Bank AG Deutsche 18.500 3/28/2025 EUR 12.600
DZ Bank AG Deutsche 17.600 6/27/2025 EUR 14.480
Swissquote Bank Eur 25.320 2/26/2025 CHF 21.670
Societe Generale SA 11.140 4/2/2026 USD 47.600
Landesbank Baden-Wu 10.500 4/28/2025 EUR 11.440
Landesbank Baden-Wu 19.000 4/28/2025 EUR 14.010
Zurcher Kantonalban 23.000 3/5/2025 CHF 35.730
Landesbank Baden-Wu 16.000 1/2/2026 EUR 18.930
Landesbank Baden-Wu 16.000 6/27/2025 EUR 14.510
Landesbank Baden-Wu 13.000 6/27/2025 EUR 14.940
Bank Vontobel AG 16.000 6/24/2025 USD 46.000
Bank Vontobel AG 16.000 2/10/2025 CHF 24.900
Bank Vontobel AG 12.000 3/19/2026 CHF 37.600
Bank Julius Baer & 12.000 5/28/2025 USD 35.500
Leonteq Securities 22.600 6/24/2025 CHF 44.730
Landesbank Baden-Wu 12.000 2/27/2026 EUR 17.110
Corner Banca SA 18.400 7/22/2025 CHF 31.730
Leonteq Securities 24.000 4/23/2025 CHF 38.630
Landesbank Baden-Wu 11.000 2/27/2026 EUR 16.430
Vontobel Financial 11.750 3/28/2025 EUR 46.940
Leonteq Securities 20.000 3/11/2025 CHF 8.490
Raiffeisen Switzerl 13.000 3/11/2025 CHF 28.540
Raiffeisen Switzerl 16.500 3/11/2025 CHF 8.980
Bank Julius Baer & 18.690 3/7/2025 CHF 25.650
Raiffeisen Switzerl 16.000 3/4/2025 CHF 9.140
Bank Vontobel AG 12.000 3/5/2025 CHF 24.000
Bank Vontobel AG 14.000 3/5/2025 CHF 7.600
Swissquote Bank Eur 18.530 3/5/2025 CHF 34.630
Bank Vontobel AG 11.000 4/11/2025 CHF 17.600
Bank Vontobel AG 14.500 4/4/2025 CHF 23.900
BNP Paribas Emissio 15.000 9/25/2025 EUR 42.360
Bank Vontobel AG 13.000 6/30/2025 USD 47.400
DZ Bank AG Deutsche 12.100 3/28/2025 EUR 49.010
Raiffeisen Switzerl 10.300 6/11/2025 CHF 47.510
Swissquote Bank SA 20.060 5/22/2025 CHF 40.790
Landesbank Baden-Wu 10.00010/24/2025 EUR 14.500
Landesbank Baden-Wu 14.00010/24/2025 EUR 14.940
Leonteq Securities 14.000 7/3/2025 CHF 49.400
Landesbank Baden-Wu 11.000 3/28/2025 EUR 11.210
Landesbank Baden-Wu 13.000 3/28/2025 EUR 10.260
Landesbank Baden-Wu 15.000 3/28/2025 EUR 9.610
Corner Banca SA 13.000 4/2/2025 CHF 48.480
HSBC Trinkaus & Bur 16.000 3/28/2025 EUR 16.970
HSBC Trinkaus & Bur 15.100 3/28/2025 EUR 17.520
HSBC Trinkaus & Bur 11.000 3/28/2025 EUR 20.900
HSBC Trinkaus & Bur 13.400 6/27/2025 EUR 20.830
HSBC Trinkaus & Bur 11.500 6/27/2025 EUR 22.480
HSBC Trinkaus & Bur 16.300 3/28/2025 EUR 5.090
HSBC Trinkaus & Bur 14.400 3/28/2025 EUR 5.160
Armenian Economy De 11.000 10/3/2025 AMD 0.000
Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000
UBS AG/London 10.250 3/10/2025 EUR 38.200
UniCredit Bank GmbH 11.20012/28/2026 EUR 44.610
Leonteq Securities 10.340 8/31/2026 EUR 40.650
Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000
UniCredit Bank GmbH 16.550 8/18/2025 USD 14.760
UBS AG/London 14.000 7/31/2025 USD 46.300
Leonteq Securities 18.000 5/27/2025 CHF 36.330
Bank Vontobel AG 15.000 4/29/2025 CHF 27.100
Leonteq Securities 22.200 4/29/2025 CHF 46.320
Bank Julius Baer & 17.100 3/19/2025 CHF 28.400
Societe Generale SA 16.000 3/18/2027 USD 49.060
Raiffeisen Schweiz 16.000 2/19/2025 CHF 35.030
Raiffeisen Switzerl 10.500 4/2/2025 EUR 47.610
Zurcher Kantonalban 10.000 3/27/2025 EUR 46.000
DZ Bank AG Deutsche 15.400 3/28/2025 EUR 47.960
DZ Bank AG Deutsche 12.100 3/28/2025 EUR 45.920
Swissquote Bank SA 14.080 2/20/2025 CHF 49.970
Swissquote Bank Eur 20.000 2/20/2025 USD 50.960
DZ Bank AG Deutsche 18.600 3/28/2025 EUR 37.810
Erste Group Bank AG 10.750 3/31/2026 EUR 42.700
Inecobank CJSC 10.000 4/28/2025 AMD 0.000
Bank Vontobel AG 14.250 5/30/2025 USD 32.500
EFG International F 13.000 6/26/2025 USD 50.410
Landesbank Baden-Wu 19.000 6/27/2025 EUR 13.060
Landesbank Baden-Wu 21.000 6/27/2025 EUR 13.320
Leonteq Securities 20.000 3/21/2025 CHF 34.390
Landesbank Baden-Wu 14.000 6/27/2025 EUR 12.600
Landesbank Baden-Wu 10.500 1/2/2026 EUR 13.390
Swissquote Bank Eur 19.380 3/18/2025 USD 49.170
Bank Vontobel AG 12.000 4/11/2025 CHF 23.100
Leonteq Securities 19.000 7/15/2025 USD 47.670
Leonteq Securities 14.00010/15/2025 CHF 35.000
Zurcher Kantonalban 14.000 6/17/2025 USD 33.780
Raiffeisen Schweiz 15.000 3/18/2025 CHF 31.210
Vontobel Financial 14.750 3/28/2025 EUR 44.670
Vontobel Financial 16.000 3/28/2025 EUR 7.710
Bank Vontobel AG 24.000 4/14/2025 CHF 34.000
Leonteq Securities 16.000 3/4/2025 CHF 35.160
Leonteq Securities 18.000 2/20/2025 CHF 44.890
Swissquote Bank Eur 16.880 3/25/2025 CHF 51.200
Raiffeisen Schweiz 13.000 3/25/2025 CHF 27.540
Landesbank Baden-Wu 16.000 6/27/2025 EUR 12.530
Leonteq Securities 12.000 7/2/2025 USD 48.660
BNP Paribas Issuanc 19.000 9/18/2026 EUR 5.070
HSBC Trinkaus & Bur 17.500 6/27/2025 EUR 6.730
HSBC Trinkaus & Bur 12.750 6/27/2025 EUR 5.000
HSBC Trinkaus & Bur 15.500 6/27/2025 EUR 41.020
HSBC Trinkaus & Bur 22.250 6/27/2025 EUR 8.470
HSBC Trinkaus & Bur 11.750 6/27/2025 EUR 42.290
HSBC Trinkaus & Bur 10.250 6/27/2025 EUR 46.590
Banque Internationa 10.000 3/19/2025 EUR 44.850
UBS AG/London 10.000 3/23/2026 USD 38.650
HSBC Trinkaus & Bur 15.900 3/28/2025 EUR 16.650
HSBC Trinkaus & Bur 15.000 3/28/2025 EUR 17.170
HSBC Trinkaus & Bur 13.300 6/27/2025 EUR 20.630
HSBC Trinkaus & Bur 11.300 6/27/2025 EUR 21.930
Basler Kantonalbank 10.000 2/3/2025 EUR 43.980
Societe Generale SA 23.110 2/17/2025 USD 45.550
UBS AG/London 21.600 8/2/2027 SEK 18.750
UBS AG/London 17.500 2/7/2025 USD 46.550
Barclays Bank PLC 21.50012/26/2025 USD 22.470
Citigroup Global Ma 25.530 2/18/2025 EUR 0.010
National Mortgage C 12.000 3/30/2026 AMD 0.000
Bank Julius Baer & 12.720 2/17/2025 CHF 16.650
Bank Vontobel AG 10.500 5/12/2025 EUR 40.900
UniCredit Bank GmbH 10.700 2/17/2025 EUR 8.310
Armenian Economy De 10.500 5/4/2025 AMD 0.000
UniCredit Bank GmbH 10.500 4/7/2026 EUR 24.760
Landesbank Baden-Wu 10.000 6/27/2025 EUR 10.890
UBS AG/London 11.000 2/17/2025 EUR 47.700
Bank Vontobel AG 10.500 2/19/2025 EUR 48.600
HSBC Trinkaus & Bur 13.400 3/28/2025 EUR 18.810
HSBC Trinkaus & Bur 11.600 3/28/2025 EUR 20.440
Corner Banca SA 10.000 2/25/2025 CHF 45.500
Leonteq Securities 10.000 2/25/2025 CHF 44.980
Landesbank Baden-Wu 14.000 6/27/2025 EUR 12.860
ACBA Bank OJSC 11.000 12/1/2025 AMD 0.000
Leonteq Securities 10.000 5/26/2025 CHF 44.270
Societe Generale SA 15.000 9/29/2025 USD 13.000
ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000
Evocabank CJSC 11.000 9/27/2025 AMD 0.000
UniCredit Bank GmbH 10.50012/22/2025 EUR 29.330
UBS AG/London 25.00010/20/2026 USD 10.910
Barclays Bank PLC 14.25012/18/2025 USD 36.912
Societe Generale SA 21.00012/26/2025 USD 21.157
Lehman Brothers Tre 10.000 6/11/2038 JPY 0.100
Teksid Aluminum Lux 12.375 7/15/2011 EUR 0.619
Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216
PA Resources AB 13.500 3/3/2016 SEK 0.124
Sidetur Finance BV 10.000 4/20/2016 USD 0.909
Lehman Brothers Tre 10.500 8/9/2010 EUR 0.100
Lehman Brothers Tre 11.000 6/29/2009 EUR 0.100
Lehman Brothers Tre 10.000 3/27/2009 USD 0.100
Lehman Brothers Tre 11.00012/19/2011 USD 0.100
Lehman Brothers Tre 16.000 10/8/2008 CHF 0.100
Lehman Brothers Tre 11.000 2/16/2009 CHF 0.100
Lehman Brothers Tre 13.000 2/16/2009 CHF 0.100
Lehman Brothers Tre 15.000 3/30/2011 EUR 0.100
Lehman Brothers Tre 13.000 7/25/2012 EUR 0.100
Lehman Brothers Tre 18.250 10/2/2008 USD 0.100
Lehman Brothers Tre 10.00010/22/2008 USD 0.100
Lehman Brothers Tre 16.00010/28/2008 USD 0.100
Lehman Brothers Tre 16.200 5/14/2009 USD 0.100
Lehman Brothers Tre 10.600 4/22/2014 MXN 0.100
Lehman Brothers Tre 10.000 5/22/2009 USD 0.100
Lehman Brothers Tre 10.44211/22/2008 CHF 0.100
Lehman Brothers Tre 17.000 6/2/2009 USD 0.100
Lehman Brothers Tre 13.500 6/2/2009 USD 0.100
Lehman Brothers Tre 13.432 1/8/2009 ILS 0.100
Lehman Brothers Tre 13.15010/30/2008 USD 0.100
Lehman Brothers Tre 14.90011/16/2010 EUR 0.100
Lehman Brothers Tre 10.000 2/16/2009 CHF 0.100
Lehman Brothers Tre 11.750 3/1/2010 EUR 0.100
Lehman Brothers Tre 10.00010/23/2008 USD 0.100
Lehman Brothers Tre 15.000 6/4/2009 CHF 0.100
Lehman Brothers Tre 12.400 6/12/2009 USD 0.100
Lehman Brothers Tre 11.000 7/4/2011 USD 0.100
Lehman Brothers Tre 12.000 7/4/2011 EUR 0.100
Lehman Brothers Tre 16.00012/26/2008 USD 0.100
Lehman Brothers Tre 16.800 8/21/2009 USD 0.100
Lehman Brothers Tre 14.10011/12/2008 USD 0.100
Lehman Brothers Tre 16.000 11/9/2008 USD 0.100
Lehman Brothers Tre 23.300 9/16/2008 USD 0.100
Lehman Brothers Tre 10.000 6/17/2009 USD 0.100
Lehman Brothers Tre 11.000 7/4/2011 CHF 0.100
Lehman Brothers Tre 11.25012/31/2008 USD 0.100
Lehman Brothers Tre 13.00012/14/2012 USD 0.100
BLT Finance BV 12.000 2/10/2015 USD 10.500
Lehman Brothers Tre 12.000 7/13/2037 JPY 0.100
Lehman Brothers Tre 13.50011/28/2008 USD 0.100
Privatbank CJSC Via 10.875 2/28/2018 USD 4.548
Credit Agricole CIB 29.69912/29/2031 EUR 46.244
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN 1529-2754.
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