Moody’s rates Xella loans B3

Moody’s Investors Service said it assigned B3 ratings to LSF10 XL Investments Sarl’s (Xella) new €1.945 billion senior secured first-lien term loan maturing in 2028 and its new €250 million senior secured first-lien revolver maturing in 2027. Both loans are issued by LSF10 XL BidCo SCA and guaranteed by Xella.

The proceeds will be used to repay the existing €1.673 billion senior secured term loans and fund a €510 million dividend distribution to Lone Star Funds.

“The dividend distribution could be higher financed additionally with a potential €200 million PIK notes, issued outside of the restricted group, which Moody's considers as equity. In the absence of PIK notes, the dividend distribution will be respectively lower. Upon completion of the envisaged transaction, Moody's will withdraw the B3 ratings on existing senior secured facilities,” the agency said in a press release.

Moody’s also affirmed Xella’s B3 corporate family and B3-PD probability of default ratings.

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