Moody’s rates M Group, facilities B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Minerva Parent Ltd. (M Group Services), a leading provider of infrastructure services to regulated markets in the UK and Ireland.

Concurrently, the agency assigned a B2 rating to the new £325 million senior secured term loan due 2025 and the new £75 million senior secured revolving credit facility due 2025, both to be issued by Minerva Bidco Ltd.

The outlook on all ratings is stable.

Net proceeds from the new term loan, together with new equity and equity-like instruments under Moody's methodology for hybrid instruments, will be used to fund the acquisition of M Group Services by funds advised by private equity group PAI Partners. Closing is expected by the end of July.

"M Group Services' B2 CFR reflects its relatively stable revenue base and good free cash flow generation, which mitigate its high Moody's-adjusted leverage of 5.1x at closing and low Moody's-adjusted EBITA margin of around 5%," Eric Kang, Moody's lead analyst for M Group Services, said in a news release.

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