S&P rates Care BidCo B

S&P said it assigned Care BidCo SAS a B issuer rating. CVC plans to acquire a majority stake in Cooper Consumer Health and use Care BidCo as its vehicle.

Care BidCo will finance the acquisition via a €920 million first-lien term loan and a €235 million second-lien term loan and is supported by an unrated €160 million revolving credit facility expected to be undrawn at closing.

S&P said it assigned the first-lien loan a B issue and 3 (60%) recovery rating and a CCC+ issue and 6 (0%) recovery rating.

“We expect Cooper's leverage to peak this year after the proposed transaction, followed by gradual deleveraging from 2021. CVC announced its acquisition of a majority stake in Cooper in March 2021,” S&P said in a press release.

The agency said it forecasts S&P Global Ratings-adjusted debt-to-EBITDA ratio of about 7.5x-7.7x (from 6.1x at year-end 2020, excluding the non-common equity instruments) and FFO cash interest coverage of around 3x-3.5x in 2021 (from 4.5x at year-end 2020).

The outlook is stable, reflecting the view that Cooper should gradually deleverage to about 7x S&P Global Ratings-adjusted debt to EBITDA in 2022, the agency said.

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