Moody's puts Nexi on upgrade review

Moody's Investors Service said it placed under review for upgrade Nexi SpA's B1 corporate family rating and B1-PD probability of default rating.

The agency also said it put on upgrade review the B1 instrument ratings on the €825 million senior secured notes due 2023 and the €1.375 billion senior secured floating-rate notes due 2023 both issued by Nexi Capital SpA.

The decision to place the ratings on upgrade review following news of Nexi's intention to launch an initial public offering of shares and to list on Borsa Italiana, Moody's said.

The proceeds are expected to be between €600 million to €700 million and will be used mainly to repay debt, the agency said.

Moody's said it expects to conclude the review process with the closing of the initial public offering.

Pro forma for the initial public offering, adjusted gross leverage is estimated to decrease to about 4.6x as of Dec. 31, 2018, the agency said.

Revenue and EBITDA growth projections are supported by Nexi's track record of delivering strong organic growth over the last three years, Moody's said.

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