S&P rates Andromeda notes B

S&P said it assigned preliminary B ratings to Andromeda Investissements and its proposed senior secured debt.

The preliminary recovery rating on the debt is 3, indicating 60% expected default recovery.

Andromeda Investissements is a holding company incorporated by funds managed by private equity firm CVC to acquire up to 100% of APRIL SA, a France-based provider of insurance wholesale brokerage services, S&P explained.

Andromeda plans to issue a €550 million term loan facility due in 2026 to fund the acquisition, the agency said.

The ratings reflect APRIL's leading market position in France as a wholesale insurance broker for a number of niche segments, S&P said.

The group's market positions are supported by its well-recognized brand, the agency said, and its large broker network, with 12,000 active brokers.

These strengths are constrained by the group's relatively small size compared with large international insurance brokers, S&P said.

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