S&P ups Siaci, rates parent, loan B

S&P said it upgraded Siaci Saint Honore to B from CCC+ and gave B ratings to its new parent, DIOT-Siaci TopCo and an €850 million term loan facility maturing in 2028 to be borrowed by its subsidiary DIOT-Siaci BidCo. The loan’s recovery rating is 3, reflecting expectation of meaningful recovery (50%-70%; rounded estimate 55%) in the event of a default.

“The rating action follows the acquisition of Siaci Saint Honore by Christian Burrus, head of Groupe Burrus Courtage (GBC), as majority shareholder, together with Siaci and GBC's management and employees, OTPP and other minority financial investors,” S&P said in a press release.

“In our view, the merger strengthens the combined group's business risk profile. We expect the combined group will generate about €620 million of net sales in 2021 and become the leading corporate insurance broker in France, and No. 7 globally, within a very fragmented market,” the agency noted.

DIOT-Siaci will use the loan to refinance debt and finance transaction costs. The capital structure also includes a 6.5-year €150 million revolver.

The outlook is stable.

© 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.