Rubix Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged - Moody's Global Credit Research

Rubix Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged

Rubix Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged - Moody's Global Credit Research
Rubix Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged
Published Feb 03, 2023
4 pages (2185 words) — Published Feb 03, 2023
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Brief Excerpt:

...On 24 January 2023, Rubix Limited (B3 stable) launched an amend to extend transaction which aims to extend the maturities of all of its senior first and second lien facilities by two years. The proposed transaction, if successful, is expected to be credit positive in addressing near term debt maturities, with the company's 135 million senior secured revolving credit facility currently expiring in March 2024. This will be extended to March 2026, while the company's 1,190 million senior secured first lien term loan will be extended to September 2026 from September 2024, and its 187 million senior secured second lien loan will be extended to September 2027 from September 2025. The company's ratings, including its B3 corporate family rating, the B2 rating on its senior secured first lien facilities and its stable outlook are unchanged. This is because we forecast that the company will remain highly levered, particularly when including expected levels of non-recourse factoring, which we consider...

  
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Rubix Limited
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Rubix Limited: Update to credit analysis following ratings affirmation - Credit Opinion – 2023/02/16 – US$ 250.00 – ...Rubix 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. Rubix holds a share of around 3% in a highly fragmented market. Its scale provides substantial advantages in terms of network density, procurement, diversity of revenue, customer service and responsiveness, leading to entrenched positions across a wide customer base. The company has recovered strongly from the pandemic as European industrial production has returned, supported by new business wins and growth of key account customers, whilst increasing inflation has also boosted profitability. We consider that supply chain constraints are net positive for the business given its ability to solve challenges for customers, although...

Rubix Group Holdings Limited - LGD Assessment – 2022/04/25 – US$ 750.00

Rubix Group Holdings Limited: Update to credit analysis - Credit Opinion – 2022/02/22 – 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. Rubix holds a share of around 2.5-3% in a highly fragmented market. Its scale provides substantial advantages in terms of network density, procurement, diversity of revenue, customer service and responsiveness, leading to entrenched positions across a wide customer base. The company is following a consolidation strategy leading to substantial debt-financed acquisitions, typically spending in excess of 150 million per annum. It has also incurred at least 50 million per annum of exceptional costs largely relating to the integration of acquisitions and network rationalisation. These factors limit deleveraging and...

Rubix Group Holdings Limited: Rubix's expected intention to float is credit positive - Issuer Comment – 2021/10/20 – US$ 200.00 – ...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,...

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....

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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 Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged" Feb 03, 2023. Alacra Store. Jun 15, 2024. <http://www.alacrastore.com/moodys-credit-research/Rubix-Limited-Planned-amend-to-extend-transaction-expected-to-be-credit-positive-ratings-unchanged-PBC_1356957>
  
APA:
Moody's Global Credit Research. (). Rubix Limited: Planned amend to extend transaction expected to be credit positive; ratings unchanged Feb 03, 2023. New York, NY: Alacra Store. Retrieved Jun 15, 2024 from <http://www.alacrastore.com/moodys-credit-research/Rubix-Limited-Planned-amend-to-extend-transaction-expected-to-be-credit-positive-ratings-unchanged-PBC_1356957>
  
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