S&P gives B+ to Obol France facilities

S&P said it assigned its B+ long-term corporate credit rating to Obol France 3 SAS (France Newco 3), a holding company to be created for the possible acquisition of a higher stake in OGF.

The outlook is stable.

At the same time, the agency assigned a B+ issue rating to the proposed €960 million term loan B and €60 million revolving credit facility to be issued by Obol France 3. The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

Ontario Teachers' Pension Plan (OTPP) is considering an increase in its stake in OGF to 74% from 40%. Pamplona Capital Management, the current majority owner, will retain a minority stake of 20%, and its management will roll over into the new structure.

OTPP intends to establish the holding company Obol France 3 to carry out the OGF transaction, and the group intends to raise about €960 million of a term loan B and €878 million of new equity, mainly in the form of preferred shares, to finance the acquisition.

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