Moody’s gives Mendel loans B2

Moody’s Investors Service said it assigned B2 ratings to the planned €1.8 billion senior secured term loan B borrowed by Financiere Mendel SAS and to the €500 million dollar-equivalent senior secured term loan B borrowed by Financiere Mendel and Mendel US Holding LLC, both due November 2030, as well as to the proposed €100 million senior secured revolving credit facility maturing in May 2030, borrowed by Ceva Sante Animale and Financiere Mendel.

Moody’s concurrently affirmed Financiere Mendel’s B2 ratings.

The proceeds will be used to repay the B2 rated €2 billion backed senior secured term loan B borrowed by Financiere Mendel and Ceva Sante Animale and €50 million backed senior secured acquisition loan facility borrowed by Ceva Sante Animale. Both facilities are due in April 2026.

The remaining €250 million will be used to pay transaction fees and upstream cash to partially repay the PIK notes due April 2027 issued outside the restricted group, amounting to €818 million as of August 2023 including accrued interests. The ratings on the existing senior secured term loan B, capex facility and RCF will be withdrawn upon repayment.

"The proposed transaction will result in a temporary increase in Ceva's Moody's-adjusted gross leverage. However, the rating affirmation reflects Moody's expectation that over the next 12-18 months sustained growth in the company's EBITDA will help it reducing its financial leverage to a level more commensurate for its rating", says Michel Bove, a Moody's AVP and lead analyst for Ceva, in a press release.

The outlook remains stable.

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