Moody’s gives Aernnova, loan B1

Moody’s Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating (PDR) to Aernnova Aerospace Corp. SA. Moody’s also assigned B1 ratings to the €390 million senior secured term loan B-1 and the €100 million delayed draw senior secured term loan B-2; with maturity in 2027, as well as to the €100 million senior secured revolving credit facility, maturing in 2026. Debt instruments will be issued by Aernnova Aerospace, SAU and guaranteed by Aernnova. The outlook is stable.

The B-1 proceeds will be used to refinance €280 million of debt, to fund €100 million shareholder distributions and to pay transaction fees and expenses. The proceeds of the term loan B-2 are expected to be used either for a second shareholder distribution or to fund new acquisitions.

“The B1 CFR is balancing Aernnova’s relatively smaller scale and high concentration in terms of customers and end-markets compared with larger peers in the industry with its long-term cooperation with aerospace OEMs, a strong competitive position in its niche market as well as its proven strong cash flow generation that will enable the company to delever quickly after refinancing,” said Ana Luz Silva, Moody’s lead analyst, in a press release.

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