Bulletin: Elvis UK Holdco's Add-On Facility Upsizing Will Not Alter Group?s Credit Quality

This report does not constitute a rating action. PARIS (S&P Global Ratings) Jan. 27, 2023--S&P Global Ratings today said the €50 million upsizing of its add-on term loan B facility does not change the credit metrics of Spain-based quick service restaurant retailer Elvis UK Holdco (B/Stable/--), parent of Restaurant Brands Iberia (RBI). Our 'B' issue level rating and '3' recovery rating on Elvis UK's senior secured debt have not changed. We anticipate the company will use the upsized facility to repay its drawn revolving credit facility (RCF) as well as some fees, leading to a leverage-neutral upsizing. Following the Ibersol network acquisition, RBI had about €45 million drawn under its RCF, primarily driven by franchisee acquisitions dating back from end

...PARIS (S&P Global Ratings) Jan. 27, 2023--S&P Global Ratings today said the 50 million upsizing of its add-on term loan B facility does not change the credit metrics of Spain-based quick service restaurant retailer Elvis UK Holdco (B/Stable/--), parent of Restaurant Brands Iberia (RBI). Our 'B' issue level rating and '3' recovery rating on Elvis UK's senior secured debt have not changed. We anticipate the company will use the upsized facility to repay its drawn revolving credit facility (RCF) as well as some fees, leading to a leverage-neutral upsizing. Following the Ibersol network acquisition, RBI had about 45 million drawn under its RCF, primarily driven by franchisee acquisitions dating back from end of 2021 coupled with its extensive greenfield opening strategy. While the coupon on the 310 million add-on is higher than the original 538 million facility B, the impact on coverage ratios is limited, so our base-case credit metrics remain largely in line with those in our most recent analysis...

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