International Design Group Rated 'B' On Consolidation Of Flos, Louis Poulsen, And B&B Italia; Outlook Stable

Private equity groups Investindustrial and The Carlyle Group have created International Design Group SpA (IDG), consolidating Flos, Louis Poulsen, and B&B Italia, three leading companies in the high-end design market. Investindustrial and Carlyle jointly own a 90%-95% stake in the group, while IDG's senior management owns the remaining 5%-10%. As part of the transaction, IDG issued €720 million senior secured notes and a €100 million super senior revolving credit facility, and shareholders contributed approximately €1.01 billion in common equity. We are assigning our 'B' rating to IDG and its senior secured notes. The stable outlook reflects our view that the group will successfully consolidate the three entities, maintaining free operating cash flow generation above €25 million, adjusted debt to EBITDA

...+ Private equity groups Investindustrial and The Carlyle Group have created International Design Group SpA (IDG), consolidating Flos, Louis Poulsen, and B&B Italia, three leading companies in the high-end design market. + Investindustrial and Carlyle jointly own a 90%-95% stake in the group, while IDG's senior management owns the remaining 5%-10%. + As part of the transaction, IDG issued 720 million senior secured notes and a 100 million super senior revolving credit facility, and shareholders contributed approximately 1.01 billion in common equity. + We are assigning our 'B' rating to IDG and its senior secured notes. + The stable outlook reflects our view that the group will successfully consolidate the three entities, maintaining free operating cash flow generation above 25 million, adjusted debt to EBITDA of 6.0x-6.5x, and EBITDA interest coverage at about 2.5x in 2019-2020. MILAN (S&P Global Ratings) Feb. 8, 2019--S&P Global Ratings today assigned its 'B' long-term issuer credit rating...

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