S&P: Linxens loans B, CCC+

Standard & Poor’s said it assigned a B long-term corporate credit rating to Financiere Lully C SAS (Linxens).

The agency also said it assigned a B rating to the first-lien term loans due 2022 and revolving credit facility due 2022 issued by financing subsidiary Lully Finance Sarl and co-borrower Lully Finance LLC.

S&P also said it assigned a recovery rating of 3 to both the first-lien loans and the revolver, indicating 50% to 70% expected default recovery.

The agency also said it assigned a CCC+ rating to the second-lien term loan due 2023 and issued by the financing subsidiaries. S&P said it assigned a recovery rating of 6, indicating 0 to 10% expected default recovery.

These ratings are in line with the preliminary ratings assigned in July 2015, S&P said.

The outlook is stable.

On Oct. 16, financial sponsor CVC Capital Partners acquired Linxens Holding SAS. At closing, all existing debt at Linxens Holding was repaid.

To finance the transaction, the holding company Financiere Lully C has issued first-lien term loans, a second-lien term loan and a revolving credit facility, S&P said.

The ratings reflect the company’s fair business risk profile and highly leveraged financial risk profile, the agency said.

The ratings are constrained by the company’s small size, particularly compared with its main customers, lack of meaningful product diversification, high customer concentration and exposure to medium- to long-term technology shifts, S&P said.

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