Moody’s rates Capri Acquisitions, facilities

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Capri Acquisitions BidCo Ltd., parent and holding company of Redtop Acquisitions Ltd. (CPA Global).

The agency also assigned definitive B1 instrument ratings to the $830 million senior secured first-lien term loan A due 2024, the €250 million senior secured first-lien term loan B due 2024 and the £80 million equivalent senior secured revolving credit facility due 2023, which are issued by Capri Acquisitions BidCo Ltd.

Concurrently, Moody's withdrew the B1 corporate family rating and B1-PD probability of default rating of Redtop Acquisitions (under review for downgrade), former parent of CPA Group, concluding the review of the ratings.

The agency also withdrew the instrument ratings of the facilities issued by Redtop Acquisitions following full repayment.

The action was prompted by the completion of the acquisition of CPA Global by Leonard Green & Partners and Partners Group AG on Nov. 1.

The final capital structure also includes €410 million senior unsecured floating-rate notes due 2025 (unrated).

To reflect the new corporate and financing structure, Moody's said it moved CPA Group's corporate family rating to Capri Acquisitions BidCo from Redtop Acquisitions and downgraded the corporate family rating to B3 from B1.

The downgrade was driven by the material increase in Moody's adjusted leverage to 8 times from 5.1 times as at LTM July 2017 and pro-forma for FX spot rates.

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