Fitch puts Diot-Siaci loans on watch

Fitch Ratings said it placed the loans borrowed by Diot-Siaci Topco SAS’ units on rating watch negative, citing the company’s announcement of a planned €300 million add-on tranche to its term loan B and a potential increase in size in its revolving credit facility.

The €1.05 billion floating-rate term loan due Nov. 16, 2028, was borrowed by Acropole Holding SAS and the €150 million revolving credit facility due May 13, 2027, by Diot-Siaci BidCo SAS. The loans are rated B+/RR3. The agency warned it will downgrade the term loan to B with an RR4 recovery rating if the company boosts the revolver size more than expected.

Fitch affirmed Diot-Siaci’s issuer rating at B with a stable outlook.

Diot-Siaci plans to use the proceeds to buy Nasco Insurance Group's brokerage business, finance a minority buyout and maintain cash on the balance sheet to fund other acquisitions.

“However, we forecast Diot-Siaci's IDR to remain within our leverage sensitivities for a B rating in the sector,” the agency said in a press release.

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