Moody’s rates Mobilux notes B3

Moody's Investors Service said it affirmed the B2 corporate family rating and B2-PD probability of default rating of Decomeubles Partners SAS, a holding company owning 100% of BUT SAS.

At the same time, the agency assigned a B3 (LGD 4) rating to the proposed €380 million worth of senior secured notes due 2024 to be issued by Mobilux Finance SAS.

The outlook is stable.

Mobilux Finance is a new holding company established in connection with the proposed acquisition of BUT by an investment consortium. Mobilux Finance will be fully owned by Mobilux 2 SAS, which is the top entity of the new restricted group.

Upon the successful closing of the bond transaction and the change of control of BUT, Moody's expects to move the corporate family rating from Decomeubles Partners to Mobilux 2. It will also withdraw the B3 instrument rating assigned to BUT’s existing senior secured notes when they are redeemed.

Moody’s said the action follows the June 29 announcement that BUT's shareholders – Colony Capital, Goldman Sachs European Special Situations Group and OpCapita – entered into exclusive negotiation with an investment consortium for the disposal of BUT, based on a binding and irrevocable offer. The consortium comprises private equity firm Clayton, Dubilier & Rice and WM Holding, an investment company associated with the XXXLutz group.

Proceeds from the proposed issuance will be used to repay existing notes previously issued by BUT, partly pay the equity value and current net debt of the company and pay related refinancing fees and expenses.

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