Moody's gives Verde Bidco, notes B2

Moody's Investors Service said it assigned B2 ratings to Verde Bidco SpA, a holding company of Itelyum Group and its planned €450 million of senior secured notes.

The B2 corporate family rating reflects the company’s leading position in certain markets, its high degree of profitability and the barriers to entry in its markets. The rating, however, is constrained by its overall small scale, its high leverage and other factors, the agency said.

The proceeds will be used to fund the acquisition of the current holding company of the Itelyum Group, SSCP Green Holdings SCA, by a fund managed by Stirling Square Capital Partners and private investment firm Deutsche Beteiligungs AG, including the repayment of substantially all outstanding indebtedness.

The outlook is stable. “The stable outlook on the ratings reflects Moody's expectations that Verde will continue to grow its EBITDA from current levels allowing for its leverage level to move comfortably below 6x debt/EBITDA over the next 18 months,” Moody’s said in a press release.

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