Moody’s reviews Global Blue, rates loan B1

Moody's Investors Service said it placed the Ba3 corporate family rating and B1-PD probability of default rating of Global Blue Finance Sarl, under review for downgrade following the company's proposed refinancing of its credit facilities through an Amend & Extend waiver and the intention to distribute circa €260 million to its shareholders.

Concurrently, the agency placed on review all the existing ratings of Global Blue Acquisition BV, a guaranteed subsidiary of Global Blue, including the Ba3 senior secured debt ratings.

"Our review reflects Global Blue's plans to offer a sizeable dividend to shareholders, to amend and extend its existing credit facilities, which is subject to lender approval, as well as to launch the syndication of a new term loan financing. Should these plans be realised, we expect that the company's leverage will increase beyond what we previously anticipated for 2016 and result in a one notch downgrade of the ratings to B1," Moody’s analyst Guillaume Leglise said in a news release.

In addition, Moody's assigned a provisional B1 LGD3 rating to the company's new senior secured term loan C reflecting the more leveraged capital structure if the proposed transaction goes forward.

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