S&P rates Evoca revolver B+, secured notes B

S&P said it affirmed its B rating on Evoca SpA and assigned a B+ issue rating to the proposed super senior revolving credit facility and B rating to the proposed senior secured notes.

The outlook is stable.

Evoca plans to refinance its capital structure by issuing €550 million senior secured notes and an €80 million super senior revolving credit facility to reduce its annual interest costs, supporting free operating cash flow generation.

As part of the transaction, Evoca’s direct parent, LSF9 Canto Midco DAC, will issue €210 million of subordinated payment-in-kind notes to repay a portion of its profit participating notes (PPNs).

“Our affirmation reflects our view that Italian coffee machine manufacturer Evoca's proposed refinancing transaction will enable the company to significantly reduce its interest expenses. This will support stronger free operating cash flow (FOCF) generation exceeding €30 million per year and solid funds from operations (FFO) to cash interest coverage over 3.0x from 2020,” S&P said in a news release.

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