S&P cuts Pronovias

S&P said it lowered its ratings for Pronovias (CatLuxe Sarl) and its €45 million revolving credit facility and its €215 million senior secured term loan to CC from CCC.

The downgrade follows Pronovias’ main shareholder, BC Partners, agreeing with a significant majority of the company’s lenders led by Bain Capital to recapitalize the company, S&P said.

If all its first-lien lenders agree, the group will implement the transaction through a fully consensual route. If not, Pronovias will implement the transaction through a U.K. restructuring plan, scheme of arrangement, or another appropriate route. As of Dec. 20, it had more than 75% of the first-lien lenders on board.

As part of the deal, Pronovias will get about €110 million-€115 million in new cash from some of its existing lenders, in the form of a new senior secured loan that will mature five years after closing. It will use the money to repay bridge facilities, and to pay transaction costs. The rest will become cash on its balance sheet at closing.

The outlook is negative. S&P said if the transaction is completed it plans to downgrade Pronovias to SD, or selective default, or D, for default, and its issue ratings to D.

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