Moody’s rates Altadia loan B2

Moody’s Investors Service said it rated B2 the planned €270 million add-on to the guaranteed senior secured term loan B issued by LSFX Flavum Bidco, SAU. Concurrently, the agency affirmed LSFX Flavum Holdco, SLU's (Altadia) B2 corporate family and B2-PD probability of default rating and the B2 ratings of the guaranteed senior secured bank credit facilities borrowed by LSFX Flavum Bidco.

Moody’s changed the outlook for both companies to negative from stable.

“The outlook change to negative reflects the company distributing around €345 million of dividends to its owner Lone Star by increasing its existing term loan B by €270 million and reducing cash on balances by around €80 million (the transaction), a shift in financial policy which had not been incorporated in the rating previously. Moody's notes that the proposed increase in term loan B (TL B) by €270 million and proposed dividend of €345 million are reflective of a high tolerance for financial risks and stretch the boundaries of the current B2 rating, hence there is no scope within the B2 rating for a higher dividend, additional dividend distribution or larger M&A until the company has restored its credit metrics back to more adequate levels for the B2 rating category,” the agency said in a press release.

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