S&P assigns BB- to Nuvei notes

S&P said it assigned BB- issue-level and 3 recovery ratings to Nuvei Corp.’s about $1.88 billion new senior secured debt facilities, comprising an about $1.08 billion senior secured first-lien term loan due in 2030 and an $800 million revolving credit facility due 2028.

The debt will be borrowed by Nuvei Corp. subsidiaries, including Nuvei Technologies Corp., Paya Inc., and Nuvei Technologies Inc., and Nuvei Services Ltd.

The ratings are the same as those on Nuvei’s outstanding senior secured debt.

Nuvei has indicated that it plans to use the proceeds and other available funds to refinance all outstanding debt, roughly $1.24 billion, and pay transaction fees and expenses.

“While these intentions would constitute a leverage-neutral transaction, our recovery expectations on these new facilities are now moderately lower than those of the existing first-lien debt under the current capital structure. This is due to the expansion of the revolving credit facility to $800 million from $385 million because the 85% utilization on the facility assumed in our hypothetical default scenario results in approximately $350 million and is only partially offset by the lower term loan balance being proposed. Ultimately, though, our recovery rating has not changed,” S&P said in a press release.

The outlook is stable.

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