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Moody’s rates Garfunkelux notes Caa1, B2
Moody’s Investors Service said it assigned a B2 corporate family rating to Garfunkelux Holdco 2 SA (GFKL-Lowell group).
Moody’s also said it assigned a provisional Caa1 foreign-currency instrument rating to the £240 million senior notes to be issued by Garfunkelux Holdco 2.
The agency also said it assigned a provisional B2 foreign-currency rating to the proposed £555 million senior secured bonds and affirmed the B2 local-currency rating of the outstanding senior secured bonds of Garfunkelux Holdco 3 SA, a subsidiary of GFKL-Lowell group.
The outlook is stable.
The ratings assignment follows news of a comprehensive financing structure built to fund the acquisition of UK Lowell Group from TDR Capital LLP and subsequent business combination with GFKL Financial Services AG by private equity owner Permira Funds at the level of Garfunkelux Holdco 3, Moody’s said.
The proceeds of the issuance mainly will be used to pay existing debt at the level of Lowell and to fund the acquisition, while the senior secured bonds issued by Garfunkelux Holdco 3 will remain outstanding as they will not be refinanced as part of this transaction, the agency said.
As a result of the organizational changes associated with the new group structure, the newly assigned ratings reflect the group’s business strengths from the combining of two of the largest non-captive third-party consumer debt collection and credit-management businesses in Europe, Moody’s sad.
The ratings also consider its leading market position as one of the largest independent and diversified debt-collection and servicing agencies in the United Kingdom and Germany, the agency said.
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