S&P rates Skill BidCo, notes B

S&P said it preliminarily rated Skill BidCo ApS and its planned $765 million of senior secured notes due 2028. The preliminary recovery rating is 4, indicating average recovery (about 40%) prospects at the time of default. The outlook is stable.

CVC Capital Partners is buying a majority stake in Skill BidCo, a new holding company set up to own Danish freight forwarder and logistics services group Scan Global Logistics. The existing shareholder AEA Investors will keep a stake. The group plans to raise $765 million-equivalent dual currency senior secured notes due 2028 and keep its $40 million and kr 450 million super senior revolving credit facilities. The revolvers are due in July and August, respectively.

The note proceeds, $771 million of equity provided by CVC and $245 million of equity rolled over from AEA and management will fund CVC's leveraged buyout of SGL. Leases will be rolled over, and the company will have a cash balance of $120 million at closing.

“The preliminary rating on the group primarily reflects SGL's position as a small-to-midsize asset-light freight forwarder and logistics services provider in the highly fragmented and price-competitive logistics industry. The business risk profile assessment reflects SGL's wide geographic footprint in Europe, North America, and Asia-Pacific, providing it broad reach, demand diversity, and value propositions, resulting in new customers and cross-selling opportunities,” S&P said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.