Moody's assigns B1 to Broom; outlook stable

Moody's Investors Service said it gave a B1 corporate family rating and a B1-PD probability of default rating to Broom Holdings BidCo Ltd., the future holding company of Beauparc Utilities Holdings Ltd., an Irish waste management company. The agency also assigned a B1 rating to Broom's planned €525 million senior secured term loan facility. The outlook is stable. This is the first time that Moody's has assigned a rating and an outlook to Broom.

“The B1 CFR is underpinned by Moody's expectation of a solid improvement in earnings over the next 12-18 months as a result of several realized and planned investment initiatives aimed at maximizing the value of waste, creating new waste value streams and increasing capacity. A number of these investments are underway, and some projects are or will be fully operational before closing of the transaction,” Moody’s said in a press release.

The term loan proceeds will be used to fund the acquisition of Beauparc and its subsidiaries by Macquarie Infrastructure and Real Assets via Macquarie European Infrastructure Fund 6.

The outlook reflects the forecast that, 12 to 18 months post-acquisition, Broom will deleverage so that debt/EBITDA is below 5x, Moody’s said.

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