S&P trims Multiversity, rates notes B

S&P said it lowered to B from B+ the long-term issuer credit rating on Multiversity SpA and the issue rating on the company's existing €765 million notes. The recovery rating on the notes is unchanged at 3 (rounded recovery estimate: 50%).

S&P assigned a preliminary B long-term issuer credit rating to Pachelbel Bidco SpA and a B preliminary issue rating to Pachelbel Bidco's proposed €1.1 billion notes, with a recovery rating of '3' (50%).

The outlook is stable.

CVC is planning to transfer Multiversity from one of its funds to a single continuation fund, in a transaction that will add €1.1 billion of debt to the company's balance sheet, increasing S&P Global Ratings-adjusted debt to EBITDA to about 7.5x in 2024 from 3.6x in 2023, before progressively deleveraging.

S&P said the group posted a strong performance in 2023 and is expected to continue to expand by 20% to 25% over 2024 to 2026, benefiting from the increasing penetration of online universities and higher tuition fees, such that adjusted EBITDA will exceed €300 million by 2025.

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