Fitch rates Cognita loan B

Fitch Ratings said it assigned expected B/RR3 ratings to Cognita’s (Lernen Bidco Ltd.) new €905 million floating-rate term loan facilities due 2029 and revised the outlook to positive from stable.

The agency also affirmed Cognita’s B- issuer default rating, the B/RR3 ratings on its floating-rate term loan due 2025 and CCC/RR6 rating on its senior secured floating-rate second-lien term loan due 2027

Term loan proceeds will be used to repay the outstanding term loans in full together with related transaction fees. “The transaction is largely leverage neutral,” the agency said in a press release.

“The positive outlook reflects our updated forecasts, including two part-equity funded acquisitions, with leverage and interest cover moving towards our upgrade sensitivities over the next 12-18 months. If the company performs strongly, this would lead to reduced refinancing risks for any amounts due under the second lien, and should not preclude a potential upgrade,” Fitch said in a press release.

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