Moody’s gives Amigo CFR, bond B1

Moody's Investors Service said it assigned a provisional B1 corporate family rating to Amigo Holdings Ltd., the holding company of the UK-based Amigo group.

The agency also assigned a provisional B1 rating to the proposed £250 million long-term senior secured bond to be issued by Amigo Luxembourg SA, which is backed by the parent, Amigo Holdings.

The outlooks are stable.

The ratings are contingent upon Amigo's successful completion of a proposed £250 million senior secured notes offering and the changes in the restricted group, where Amigo will use the proceeds from the bond issuance to repay an existing senior facility agreement and partially repay shareholder loan notes. The remainder of these shareholder loan notes issued by Amigo Holdings will be converted into common equity in the new holding that will be incorporated once Amigo Holdings will be released from the restricted group.

Amigo will enter into a new £57 million five-year super senior revolving credit facility.

Moody’s said the provisional B1 corporate family rating is supported by Amigo's market share and simple business model, strong profitability and liquidity metrics and a supporting ownership structure which shows an alignment of interests between the senior management of the company and its main shareholder.

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