Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive - Moody's Global Credit Research

Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive

Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive - Moody's Global Credit Research
Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive
Published Oct 20, 2021
3 pages (1950 words) — Published Oct 20, 2021
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Brief Excerpt:

...On 14th October 2021 Rubix Group Holdings Limited (B3 stable) announced that it is considering an initial public offering on the London Stock Exchange. The company's current expectation is that an IPO would raise proceeds of approximately 850 million, with a free float of at least 25% of its issued share capital. The company stated in its registration document also published on 14 October that if it proceeds with an IPO it intends to repay and/or refinance its existing senior secured term loans and revolving credit facility, as well as certain other of its indebtedness. We expect that some or all of the proceeds would be applied in prepayment of the company's senior secured debt, a credit positive. As at June 2021 Rubix's Moody's-adjusted debt amounted to 1.55 billion. This differs from the company's net debt figure of approximately 1.3 billion as it includes our standard adjustments for finance lease liabilities, recourse factoring, pension liabilities and deferred consideration obligations,...

  
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Rubix Group Holdings Limited
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Rubix Group Holdings Limited: Update to credit analysis - Credit Opinion – 2021/08/26 – US$ 250.00 – ...Rubix Group Holdings Limited (Rubix or the company, B3 stable), formerly IPH-Brammer Holdings Limited, is Europe's leading industrial parts distributor, focused primarily on the maintenance, repair and overhaul (MRO) segment. The company was formed in 2017 through the acquisitions of Brammer Limited (Brammer) in February 2017 and Industrial Parts Holding SAS (IPH) in September 2017. The company's scale provides substantial advantages in terms of network density, procurement, diversity of revenue, customer service and responsiveness, leading to entrenched positions across a fragmented customer base. Rubix was affected by disruption to industrial production as a result of the coronavirus pandemic during 2020. Revenue performance has improved sequentially since a trough in April 2020, although EBITDA margins were also affected by lower volumes and cost investments in anticipation of a return to growth. We expect a return to growth in organic revenues and EBITDA from 2021. Rubix has been following...

Rubix Group Holdings Limited: Update to credit analysis - Credit Opinion – 2020/08/31 – US$ 250.00 – ...Rubix Group Holdings Limited (Rubix or the company, B3 stable), formerly IPH-Brammer Holdings Limited, is Europe's leading industrial parts distributor, focused primarily on the maintenance, repair and overhaul (MRO) segment. The company was formed in 2017 through the acquisitions of Brammer Limited (Brammer) in February 2017 and Industrial Parts Holding SAS (IPH) in September 2017. The company's scale provides substantial advantages in terms of network density, procurement, diversity of revenue, customer service and responsiveness, leading to entrenched positions with a fragmented customer base. Rubix has been affected by disruption to industrial production as a result of the coronavirus pandemic in the second quarter of 2020, however from a trough in April results have recovered strongly. The company has benefited from a shift over the last two to three years towards less cyclical sectors, through acquisitions and new account wins, which are less deeply affected by the pandemic....

Rubix Group Holdings Limited: Update to credit analysis - Credit Opinion – 2019/08/02 – US$ 250.00 – ...Rubix Group Holdings Limited (Rubix or the company), formerly IPH-Brammer Holdings Limited, is Europe's leading industrial parts distributor. The company was formed in 2017 through the acquisitions of Brammer Limited (Brammer) in February 2017 and Industrial Parts Holding SAS (IPH) in September 2017. The company's scale provides substantial advantages in terms of network density, procurement, diversity of revenue, customer service and responsiveness, leading to entrenched positions with a fragmented customer base. Rubix is focused primarily on the more defensive maintenance, repair and overhaul (MRO) segment, but the industry remains cyclical: revenue fell by 11%-17% and EBITDA margin by 100 basis points in 2009 before recovering in the following two years. The market is highly fragmented, leading to further substantial bolt-on acquisition opportunities with the potential for high levels of procurement and overhead savings. The company is pursuing an aggressive debt-funded acquisition strategy...

Rubix Group Holdings Limited: Rubix' upsize of term loan delays deleveraging plan, but does not affect ratings - Issuer Comment – 2018/10/25 – US$ 200.00 – ...On Thursday, 25 October, Rubix Group Holdings Limited (Rubix, B3 stable) announced plans to increase its existing term loan maturing in 2024 by 65 million to 830 million. Borrower under term loan is Rubix Group Finco Limited. The company will use the proceeds to repay drawings under the revolving credit facility amounting to approximately 35 million and add 25 million additional available liquidity. Furthermore, we expect the company will benefit from the repriced interest rate. The transaction increases our Moody's-adjusted gross leverage expectation by 0.2-0.3x debt/ EBITDA, implying that our expectation for leverage range for fiscal year-end 2018 is now 6.7-6.8x from previously 6.5x. Therefore, our expected leverage improvement to a level that we deem appropriate for the B3 rating is likely to be delayed by 3-6 months. We had indicated a downgrade trigger of failure to improve leverage towards 6.5x by year-end 2018. Nevertheless, we expect Rubix to decrease leverage over the next 12-18...

IPH-Brammer Holdings Limited: Update to discussion of key credit factors - Credit Opinion – 2018/06/25 – US$ 250.00 – ...The B3 CFR assigned to the combined Brammer/IPH group reflects (1) the combined group's leading position as number one industrial parts distributor in Europe, with (2) a dense distribution network across Europe and large product offering (over 5 million SKUs), which ensures product availability and fast delivery times, together with numerous after-sales services resulting in high customer retention, (3) more stable demand in the group's key maintenance, repair and operations (MRO) segment (c.75% of group sales), (4) fairly resilient margins historically and profitability, which we expect to improve over the next two years as operational issues at Brammer are addressed and synergies from the IPH acquisition realised, (5) entrenched relationships with a diverse base of customers (local to key accounts) from different industries (e.g. general industry, automotive, food, metals/steel, aerospace, packaging), (6) adequate liquidity with forecast positive free cash flow generation, and (7) an...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive" Oct 20, 2021. Alacra Store. Nov 30, 2021. <http://www.alacrastore.com/moodys-credit-research/Rubix-Group-Holdings-Limited-Rubix-s-expected-intention-to-float-is-credit-positive-PBC_1307300>
  
APA:
Moody's Global Credit Research. (). Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive Oct 20, 2021. New York, NY: Alacra Store. Retrieved Nov 30, 2021 from <http://www.alacrastore.com/moodys-credit-research/Rubix-Group-Holdings-Limited-Rubix-s-expected-intention-to-float-is-credit-positive-PBC_1307300>
  
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