Moody's assigns idverde, loans B3

Moody's Investors Service said it assigned a first-time B3 corporate family rating and a B3-PD probability of default rating to Armorica Lux Sarl (idverde), the parent company of idverde. Concurrently, Moody's also gave a B3 rating to the €335 million senior secured first-lien term loan B due 2028 and to the €50 million senior secured first-lien revolving credit facility due 2028. Moody's assigned a stable outlook.

"idverde's B3 rating reflects the company's leading positions in the highly fragmented landscaping services markets in some core European countries," said Lorenzo Re, a Moody's vice president, senior analyst and lead analyst for Armorica Lux, in a press release.

"The rating also reflects idverde's narrow business focus, its high leverage and some execution risk related to its acquisitive policy," Re added.

Term loan proceeds and €35 million of new equity, will be used to refinance idverde’s €350 million term loan, pay transaction fees and increase the cash on balance by €11 million.

The outlook reflects idverde’s revenue and EBITDA growth prospects with an expectation it will deleverage from around 7x and that EBITDA growth will allow leverage to strengthen to around 6x by year-end 2022, Moody’s said.

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