S&P gives Selecta revolver BB-, notes B

S&P said it affirmed the B long-term corporate credit rating on Selecta Group BV.

The outlook is negative.

At the same time, the agency assigned a BB- issue rating to Selecta's proposed super senior revolving credit facility due in 2023, and a B issue rating to the proposed €1.3 billion senior secured notes due 2024.

The recovery rating on the revolver is 1, indicating an expectation of very high (90%-100%; rounded estimate: 95%) recovery prospects in the event of a payment default. The recovery rating on the notes is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery.

In addition, S&P affirmed the B issue rating on the group's €350 million and Swiss franc 245 million senior secured notes due June 2020 and the BB- issue rating on Selecta's super senior revolver due in 2019.

The recovery rating on the notes is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 60%) recovery, while the recovery rating on the revolver is 1, indicating an expectation of very high (90%-100%; rounded estimate: 95%) recovery.

The agency said the affirmation follows Selecta's announcement that it has agreed to acquire Gruppo Argenta SpA. Selecta plans to use the proceeds of the proposed issuances to pay the cash portion of the acquisition price and to refinance the capital structure of the combined group, having assumed Argenta's debt under the terms of the acquisition.

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