S&P rates Pique Midco 2, loan B

S&P said it preliminarily assigned B ratings to Pique Midco 2 Sarl and its planned €350 million seven-year secured first-lien term loan. The company also plans to secure a €70 million 6.5-year revolving credit facility. The loan recovery rating is 3, indicating meaningful recovery (50%-70%; rounded estimate: 55%) in default.

The outlook is stable.

Apax Partners and Fremman Capital said they reached a definitive agreement to acquire co-controlling (45% each) stakes in Pique Midco in a deal financed through equity and the two loans.

“Pique Midco is a leading medical technology (MedTech) distributor in Southern Europe with a proven track record of fast growth in sales and EBITDA. The company is focused on the marketing, sales, and logistics of high-value-added MedTech equipment to a fragmented customer base of public and private hospitals and laboratories across Spain, Portugal, and Italy. The company has more than quadrupled its revenue since 2016 with the help of about 7% compound annual growth rate (CAGR) from the historical organic perimeter, and further supported by acquisitions,” S&P said in a press release.

“S&P Global Ratings forecasts moderate organic growth and margin accretion with leverage of around 6x over the next two years. We forecast revenue growth of about 3%-4% over the next two years excluding bolt-on acquisitions with S&P Global Ratings-adjusted EBITDA margin at about 14% and FOCF in excess of €10 million per year. This should result in adjusted leverage of 6.2x in 2024 and 5.9x in 2025,” the agency said.

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