Moody’s rates Picard notes B3, Caa1

Moody’s Investors Service said it gave B3 ratings to Picard Groupe SAS’ planned €1.2 billion of guaranteed senior secured floating-rate notes and Lion/Polaris Lux 4 SA's upcoming €250 million of guaranteed new senior secured fixed-rate notes, both due 2028. The agency also gave a Caa1 rating to Picard Bondco SA’s proposed €260 million of guaranteed new senior unsecured notes due 2029. Moody’s also affirmed the B3 corporate family rating and B2-PD probability of default rating.

“Picard's €1.2 billion new senior secured floating rate notes and €250 million new senior secured fixed-rate notes are rated B3, at the same level as the corporate family rating, because of the limited amount of, respectively, more senior and subordinated debt in the overall debt structure. These instruments are guaranteed by material subsidiaries and secured by shares, material intercompany receivables and material bank accounts of these subsidiaries. However, there are limitations on the amounts that the operating subsidiaries can guarantee. The company's €260 million senior unsecured notes are rated Caa1, one notch below the B3 CFR, reflecting their subordination to the senior secured notes. These notes are not guaranteed by operating companies with material EBITDA generation,” Moody’s said in a press release.

Picard will use the proceeds to repay its outstanding secured and unsecured notes, fund a €276 million dividend and pay the call premium, interest and fees on the outstanding notes.

The outlook is stable.

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