Moody's assigns Infront B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Infront Luxembourg Finance Sarl, a wholly owned direct subsidiary of Infront Holding AG and the top most entity of the restricted group defined under its bank facilities agreement.

Concurrently, Moody's gave B2 ratings to the proposed €300 million first-lien senior secured term loan B and €50 million senior secured revolving credit facility and a Caa2 rating to the proposed €100 million second-lien senior secured term loan B, all to be issued by Infront Luxembourg. The outlook assigned is positive.

"The B3 CFR reflects the group's high Moody's-adjusted gross debt/two-year average EBITDA of around 6.3x expected over 2020 and 2021, with limited prospects of deleveraging over 2022 and 2023 due to low EBITDA growth. Yet, the positive outlook is supported by our expectation that the company will generate healthy free cash flow (including potential working capital swings) from 2022 onwards supported by its asset-light model and no planned dividend payments to its strategic owner Wanda Sports Group Co. Ltd.," said Gunjan Dixit, a Moody’s vice president, senior credit officer and lead analyst on Infront Luxembourg, in a press release.

The majority of the proceeds will be used to refinance the group's bank debt.

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