Moody’s assigns Winterfell, loans B2

Moody’s Investors Service said it gave B2 ratings to Winterfell Financing Sarl planned €1.345 billion senior secured seven-year term loan B and €200 million 6.5-year senior secured revolving credit facility.

Winterfell Financing was formed to effect Stark group’s acquisition by CVC Capital Partners from Lone Star funds.

The new shareholder will make an equity contribution of about €1 billion (44% of the purchase price, including fees and expenses). Simultaneously, Moody’s assigned a B2 corporate family rating and B2-PD probability of default rating to Winterfell Financing.

The B2 corporate family rating is supported by Stark’s leading position in the building materials distribution market in Germany and in the Nordic countries and its resilient performance and cash flow generation in recent years. “The rating is constrained by its high leverage, which Moody’s estimates to be around 6x debt/EBITDA in the next 12-18 months combined with the expectation of a gradual deleveraging over the next quarters,” the agency said in a press release.

The outlook is stable.

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