Moody's assigns Accell, loans B1

Moody's Investors Service said it assigned a first-time B1 corporate family rating and B1-PD probability of default rating to Sprint BidCo BV (Accell), the parent company of bike-manufacturer Accell Group. The agency also gave B1 ratings to the planned €700 million guaranteed senior secured term loan B due 2029 and new €180 million guaranteed senior secured revolving credit facility due 2029 to finance the acquisition of Accell Group NV by a consortium led by Kohlberg Kravis Roberts.

“Accell's B1 CFR reflects the company's sustained revenue growth and resilient operating performance supported by the strong demand for bicycles, boosted by the coronavirus pandemic and by positive market fundamentals. Furthermore, the rating is underpinned by Moody's expectations that Moody's-adjusted debt/EBITDA will reduce below 5x over the next 12-18 months supported by earnings' growth,” the agency said in a press release.

However, Accell’s starting leverage will be high at 5.6x, half of its materials come from three suppliers, and it faces competition from new entrants into the e-bike and e-cargo markets, Moody’s said.

The outlook is stable.

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