Moody's ups Mehilainen, gives loan B2

Moody's Investors Service said it upgraded the corporate family rating to B2 from B3 and the probability of default rating to B2-PD from B3-PD of Mehilainen Yhtyma Oy.

Moody's also assigned a B2 rating to the planned €300 million add-on to the senior secured first-lien term loan by Mehilainen Yhtiot Oy. Concurrently, Moody's affirmed the B2 instrument rating of the first-lien senior secured term loan, the B2 instrument rating of the senior secured revolving credit facility all issued by subsidiary Mehilainen Yhtiot Oy.

“Mehilainen has been acquiring bolt-on targets largely using its cash generated over the past years, leading to deleveraging since its LBO in 2018. At the end of 2020, Moody's adjusted Debt / EBITDA stood at 6.9x and is expected to further improve towards 6x in the next 12-18 months,” Fitch said in a press release.

The proceeds will be used to repay €50 million of the senior secured first-lien term loan and €200 million senior secured second-lien term loan in full.

The outlook of both entities is stable.

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