S&P gives Maxeda notes B-

S&P said it assigned a preliminary B- rating to Maxeda DIY Group BV’s planned €400 million of senior secured notes with an expected maturity of six years. The agency also placed the company’s CCC+ long-term issuer credit rating on CreditWatch with positive implications.

Maxeda plans to refinance all its senior secured notes by issuing senior secured instruments comprising notes of €400 million and a revolving credit facility of up to €65 million. The RCF will be undrawn at the refinancing's closing, S&P said.

“If executed on time, the proposed refinancing will resolve the group's short-term refinancing risk and shore up liquidity, while having a positive effect on the group's leverage,” S&P said in a press release.

The positive watch reflects the likely upgrade to B- if the refinancing is successful on terms mostly matching the agency’s base case, S&P said.

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