S&P assigns B to Ceva loans

S&P said it assigned B issue ratings to the planned €1.8 billion senior secured term loan B and proposed €500 million U.S. dollar-equivalent term loan B, which Financiere Top Mendel SAS (Ceva Santa Animale SAS) plans to issue through its financing vehicle Financiere Mendel. The recovery rating on the two loans is 3, reflecting meaningful recovery prospects (50%-70%; rounded estimate: 55%).

As part of the transaction, the company is also obtaining a new €100 million revolving credit facility with a 6.5-year term. “This will strengthen the company's liquidity position, which we assess as adequate. We expect the RCF to be fully available at closing of the transaction,” S&P said in a statement.

The company will use the proceeds to repay its €2 billion senior secured term loan B, also rated B with a 3 recovery rating, repay other secured debt and partly repay its payment-in-kind facility.

The outlook is stable.

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