Moody’s assigns Aenova facilities B3

Moody’s Investors Service said it assigned a B3 instrument rating to the new €440 million term loan B and the new €50 million revolver issued to Aenova Holding GmbH.

Proceeds from the €440 million first-lien cash-pay facility and the €100 million second-lien pay-in-kind facility, along with a €100 million of equity injection from BC Partners and €28 million of cash on balance sheet, will be used to repay the €651 million of bank debt and fees associated with the transaction. As part of the senior facility agreement, the company will also enter into a new revolver agreement. Moody’s will withdraw the instrument ratings on the €639 million existing first- and second-lien facilities upon their repayment and the €50 million revolver upon its cancellation.

Moody’s also upgraded the corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD for Apollo 5 GmbH or Aenova. The ratings are conditional on Aenova successfully placing the new debt.

“Today’s rating action on Aenova reflects the proposed refinancing of its capital structure, tackling the main short-term risk, which is now more likely given the progress the company has made in its turnaround plan. The equity injection is also credit positive because it will reduce debt and implies that shareholders are supportive of Aenova’s transformation,” said Florent Egonneau, a Moody’s associate vice president and lead analyst for Aenova, in a press release.

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