Moody’s cuts Centrient’s first-lien facilities

Moody’s Investors Service said it downgraded Centrient Holding BV’s (BCPE Max Dutch Bidco BV) first-lien senior secured term loan B and senior secured revolving credit facility to B2 from B1.

Moody’s also affirmed Centrient’s corporate family rating and probability of default rating at B2 and B2-PD, respectively. The agency also changed the outlook to negative from stable.

Last February, Centrient reported its intention to acquire an 80% stake in Astral SteriTech. The purchase price and related fees will be financed via a €180 million add-on to Centrient’s €335 million term loan B. As part of the transaction, it will also upsize its revolver to €85 million from €75 million. The remaining 20% stake in Astral will be acquired via an earn-out structure at a later stage.

The outlook change reflects Centrient’s high adjusted pro forma 2020 gross leverage of 6.7x and Moody’s expectation that gross leverage will remain above the rating agency’s guidance for a B2 rating in 2021.

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