Moody’s rates Marcel loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Marcel LUX IV Sarl.

Marcel is the newly set up parent company of SUSE.

Concurrently, the agency assigned a B2 rating to the $325 million senior secured first-lien term loan B1 issued by Marcel BidCo LLC, and B2 ratings to the $350 million equivalent senior secured term loan B2 due 2025 and the $81 million senior secured revolving credit facility due 2025 issued by Marcel BidCo GmbH.

The outlook is stable.

On July 2, Marcel agreed to acquire SUSE for $2.535 billion from Micro Focus International plc (B1 negative).

The transactions will be partly financed through the new rated debt and is expected to close in the first quarter or second quarter of 2019.

The agency said the corporate family rating reflects the high initial Moody's-adjusted debt/EBITDA of 8.2x and 8x expected for the year ending October 2018 and 2019, respectively and pro forma for transaction.

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