S&P rates Affidea, loans B+

S&P said it assigned B+ ratings to Celeste Midco 1 BV, the new parent of Affidea BV and its €600 million term loan due 2029 and its €150 million committed revolving credit facility due 2028 to be issued by Celeste Bidco BV. The recovery rating on the loans is 3.

Groupe Bruxelles Lambert reported it agreed to acquire a majority stake in Affidea from owner B-Flexion. Affidea's management will keep a minority stake in the business.

“The ratings reflect the relatively high S&P Global Ratings-adjusted debt leverage of close to 6x after the transaction closes and our forecast of leverage falling below 5.5x by 2023, with the company largely reinvesting free cash flows in growth. For the fiscal year ending Dec. 31, 2022, we project overall revenues of €670 million-€680 million and S&P Global Ratings-adjusted EBITDA of €145 million-€150 million, with FOCF (after lease payments) of €30 million-€40 million,” the agency said in a press release.

The outlook is negative, indicates a possible downgrade if the company deviates from the agency’s base case over the next 12-18 months, S&P said. It wants to see adjusted debt to EBITDA on track to drop under 5.5x by the end of 2023.

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