S&P rates Blitz 20-486, loan B

S&P said it assigned B ratings to Blitz 20-486 GmbH and its planned seven-year €740 million senior secured term loan B. The loan will be issued by subsidiary Blitz 20-487 GmbH and have a 3 recovery rating.

PAI Partners will use the proceeds with an eight-year €100 million second-lien loan to help it acquire Apleona. The group’s new capital structure will also include a €145 million senior secured revolver. The new owner and Apleona’s managers will also contribute about €690 million of equity, part of it in the form of preferred shares.

“Our view of Apleona’s financial risk profile primarily reflects our expectation that the contemplated transaction will result in high adjusted leverage of about 7x-7.5x at year-end 2021, from about 5.8x expected at year-end 2020. We expect adjusted leverage will decrease to about 6.5x-7x by year-end 2022, driven by solid revenue and EBITDA growth,” S&P said in a press release.

The outlook is stable.

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