Moody’s ups Maxeda PDR, rates notes B2

Moody's Investors Service said it assigned a provisional B2 rating to Maxeda DIY Holding BV's proposed €475 million worth of senior secured notes due 2022 (consisting of fixed- and floating-rate tranches).

Concurrently, the agency affirmed Maxeda's B2 corporate family rating and upgraded the probability of default rating to B2-PD from B3-PD as a result of the proposed change in the capital structure.

The B2 ratings on the existing senior secured bank facilities outstanding at Maxeda DIY BV were also affirmed.

The outlook remains stable.

Maxeda will use the proceeds from the new senior secured notes to repay in advance the outstanding bank facilities at Maxeda DIY BV and to pay transaction costs.

Moody’s said the provisional B2 rating assigned to the proposed senior secured notes reflects the fact that the notes benefit from: (a) Guarantees and share pledges from material subsidiaries of Maxeda, which account for almost all of the company's EBITDA; and (b) pledges over certain moveable assets of the group.

The rating also takes into account the presence of €50 million worth of super senior revolving credit facility (unrated) at Maxeda DIY level as part of the proposed refinancing.

Moody's will withdraw the rating on the existing bank facilities once they are fully repaid.

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