S&P rates Kane Bidco, notes B

S&P said it assigned B ratings to Kane Bidco Ltd. and its senior secured notes. The recovery rating on the notes is 4.

True Potential sold a majority ownership stake to Cinven and refinanced its capital structure. The new structure comprises a £100 million super senior revolving credit facility, of which £25 million is expected to be drawn, £400 million of senior secured notes due 2027 and €360 million of senior secured notes due 2027 sold by Kane Bidco, the agency noted.

“Our rating on Kane Bidco reflects True Potential's modest, but growing, scale and revenue base, supported by a sound operating performance. At the same time, its rapid expansion through accelerated advisor requirement consumes a large share of the cash flow and requires significant debt funding. This results in a balance sheet with a relatively high leverage, comparable with similarly rated peers,” S&P said in a press release.

The outlook is positive, indicating a possible upgrade in the next 12 months if the group’s leverage improves to comfortably below 5x, the agency said.

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