Netherlands-Based Value Retailer Action's Proposed Additional Term Loan B Tranche Rated 'B+'; Other Ratings Affirmed

Peer Holding III B.V., the parent of Netherlands-based value retailer Action, intends to issue an additional €625 million term loan B facility (TLB) to partially fund a €750 million shareholder distribution, increasing total debt outstanding. This event financing is alongside and in support of an equity reorganization, where the current shareholder, 3i, will continue to control 78% of the group and the U.S. private equity firm Helmmann&Friedman has acquired a minority share from Partners Group. Following consistently robust operating performance and track record of deleveraging since the last recap in March 2018, we believe Action's credit metrics post-transaction, with debt-to-EBITDA of about 5.5x, will remain commensurate with our assessment of the group's aggressive financial policy and the 'B+'

...November 18, 2019 - Peer Holding III B.V., the parent of Netherlands-based value retailer Action, intends to issue an additional 625 million term loan B facility (TLB) to partially fund a 750 million shareholder distribution, increasing total debt outstanding. - This event financing is alongside and in support of an equity reorganization, where the current shareholder, 3i, will continue to control 78% of the group and the U.S. private equity firm Helmmann & Friedman has acquired a minority share from Partners Group. - Following consistently robust operating performance and track record of deleveraging since the last recap in March 2018, we believe Action's credit metrics post-transaction, with debt-to-EBITDA of about 5.5x, will remain commensurate with our assessment of the group's aggressive financial policy and the 'B+' rating. - Therefore, on Nov. 18, 2019, S&P Global Ratings assigned its 'B+' issue-level rating and '4' recovery rating to the proposed 625 million TLB, and affirmed its...

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