Moody’s rates Kerneos loan, revolver B1

Moody's Investors Service said it affirmed the B1 corporate family rating and the B1-PD probability of default rating of Kerneos Holding Group SAS.

Concurrently, the agency assigned provisional B1 (LGD3) ratings to the proposed €445 million senior secured term loan B maturing 2023 and the proposed senior secured €60 million revolving credit facility maturing 2022 to be raised by Kerneos Corporate SAS, Kerneos Holding North America, Inc. and Kerneos Group SAS as co-borrowers.

Term loan proceeds will be used to refinance the group's existing €375 million senior secured notes due 2021 (€350 million rated) plus accrued interest, issued by Kerneos Corporate, to fully redeem all outstanding preferred equity certificates (PECs) including accrued interest, to pay fees for the early redemption of the notes as well as expected transaction costs.

The outlook is stable.

Upon completion of the proposed refinancing, Moody's said it will withdraw the B1 (LGD3) rating on the group's existing senior secured notes issued by Kerneos Corporate.

Furthermore, the agency might move the corporate family rating to the level of Kerneos Group (parent of Kerneos Holding), which will become a borrower of the proposed new term loan.

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