S&P rates Biscuit debt B, CCC+

S&P said it assigned a preliminary B rating to Biscuit International’s proposed €490 million term loan B (TLB) and a preliminary CCC+ issue rating to the company's proposed €110 million second-lien instrument, which will be used to buy the company. The respective preliminary recovery ratings are 3, indicating an estimate of 50% recovery prospects, and, indicating an estimate of 0% recovery prospects. S&P also assigned a preliminary B rating to the company.

Post-closing of the leveraged buyout transaction, Biscuit will have a highly leveraged capital structure with debt to EBITDA reaching 7.2x, as adjusted by S&P Global Ratings. Cookie Acquisition SAS (Biscuit International) was acquired by private equity fund Platinum Equity through a mix of bank debt (split between a €490 million of term loan with a seven-year maturity and a €110 million second-lien instrument with an eight-year maturity) and pure equity, the agency said.

Biscuit International's adjusted debt to EBITDA will reach 7.2x. “We consider this level of leverage to be aggressive but still commensurate with our B rating level,” S&P said in a press release.

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