S&P rates Minerva, facilities B

S&P said it assigned its preliminary B long-term issuer credit rating to Minerva Parent Ltd. (M Group Services) and its financing subsidiary, Minerva Bidco Ltd. (UK).

At the same time, the agency assigned its preliminary B issue rating to the group's proposed £325 million term loan B and £75 million revolving credit facility. The recovery rating is 3, indicating a view of meaningful recovery prospects (50%-70%; rounded estimate: 50%) in the event of a payment default.

The action follows the announcement that M Group Services has agreed to be acquired by financial sponsor PAI Partners, S&P said.

The group plans to finance the acquisition and refinance its existing capital structure through the issuance of the new senior secured term loan, supported by the revolver, which will be undrawn at closing.

S&P said it expects that M Group Services will grow revenues organically by about 2% to 3% per year, and that the group will maintain stable EBITDA margins and continue to generate positive free operating cash flow over the next 12 months.

© 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.