Moody's assigns B1 Sherwood notes

Moody's Investors Service said it assigned a B1 corporate family rating to Sherwood Parentco Ltd. and B1 senior secured rating to the euro fixed- and floating-rate and sterling fixed-rate senior secured notes, in the total amount of about £1.2 billion-equivalent, to be issued out of Sherwood Financing plc.

Moody's also withdrew the Ba3 corporate family rating and negative outlook of Sherwood's predecessor entity Arrow Global Group plc.

“The B1 CFR assigned to Sherwood Parentco Ltd.(Sherwood) reflects the financial profile of the new entity, which has been created by the acquisition of Arrow Global Group plc (Arrow) by the private equity firm TDR Capital, and Sherwood's expected performance in the next 12-18 months. Specifically, the assigned CFR of B1 for Sherwood reflects the expected increase in debt/EBITDA leverage at the time of the acquisition, which Moody's estimates will be approximately 5x on a pro forma basis, based on Arrow's annualized EBITDA for H1 2021 and the announced amount of the debt offering,” the agency said in a press release.

The outlook for both entities is stable.

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