S&P rates Skill BidCo, notes B

S&P said it assigned B ratings to Skill BidCo ApS and its €750 million senior secured notes due 2028. The recovery rating on the notes is 4, indicating average recovery (about 40%) prospects if the issuer defaults. The outlook is stable. The company also upsized and extended its Danish krone and U.S. dollar super senior revolving credit facilities to DKK 750 million and $75 million, respectively, now due in 2027.

CVC Capital Partners bought a 73% stake in Skill BidCo, a new holding company set up to own Danish freight forwarder and logistics services group Scan Global Logistics ApS. The existing shareholder AEA Investors kept a stake. The agency also withdrew its ratings on SGLT Holding I LP, the former parent holding company of the SGL group, and SGL International A/S at the issuer's request.

CVC used the notes’ proceeds, equity and rolled-over equity to buy its stake

“The group's highly leveraged capital structure, as reflected in S&P adjusted debt to EBITDA peaking at about 5.5x in 2023 and its private equity ownership, constrain our view of the group's creditworthiness,” S&P said in a statement.

The outlook reflects the view that the company will keep its credit metrics steady over the next 12 months with S&P Global Ratings-adjusted debt to EBITDA at below 6x and funds from operations (FFO) cash interest cover at about 2x.

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