Moody’s assigns Renk, notes B1

Moody’s Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Rebecca BidCo GmbH, a holding company formed to acquire a 76% stake in Renk AG by private equity firm Triton.

Concurrently Moody’s assigned a B1 rating to the proposed €300 million of seven-year senior secured notes, issued by Rebecca BidCo.

The proceeds and new equity will be used to finance the acquisition of a 76% stake in Renk from Volkswagen Vermogensverwaltungs-GmbH, a subsidiary of Volkswagen AG and to pay related fees and expenses.

The ratings represent Renk’s strong positions in niche markets, Moody’s said.

The outlook is stable. “The stable outlook reflects Moody’s expectations that Renk’s business is resilient enough to avoid Moody’s-adjusted leverage rising sustainably above 5x in the next 18-24 months, while generating small but positive free cash flow,” the agency said in a press release.

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