Research Update: Irish Waste Management Services Company Broom Holdings Bidco Ltd. (Beauparc) Rated 'B'; Outlook Stable

Macquarie European Infrastructure Fund 6 (MEIF6) acquired Beauparc, an integrated waste-to-resource operator, via new entity Broom Holdings Bidco Ltd., funded with a new €555 million term loan B (TLB), which was upsized by €30 million during syndication, and equity contribution of 59% (representing €840 million). We forecast Broom Holdings' S&P Global Ratings-adjusted debt to EBITDA at around 6.0x at year-end 2021, followed by deleveraging in the coming year as growth initiatives materialize. We assigned our 'B' long-term issuer credit rating to Broom Holdings €555 million TLB and €120 million revolving credit facility (RCF), with a recovery rating of '3' on the debt indicating meaningful recovery prospects (50%-70%; rounded estimate 50%) in the event of a default. The stable outlook reflects

...- Macquarie European Infrastructure Fund 6 (MEIF6) acquired Beauparc, an integrated waste-to-resource operator, via new entity Broom Holdings Bidco Ltd., funded with a new 555 million term loan B (TLB), which was upsized by 30 million during syndication, and equity contribution of 59% (representing 840 million). - We forecast Broom Holdings' S&P Global Ratings-adjusted debt to EBITDA at around 6.0x at year-end 2021, followed by deleveraging in the coming year as growth initiatives materialize. - We assigned our 'B' long-term issuer credit rating to Broom Holdings 555 million TLB and 120 million revolving credit facility (RCF), with a recovery rating of '3' on the debt indicating meaningful recovery prospects (50%-70%; rounded estimate 50%) in the event of a default. - The stable outlook reflects our view that continued organic growth and execution of growth initiatives will result in S&P Global Ratings-adjusted EBITDA margins of around 17.5%, double-digit free operating cash flow (FOCF),...

Research Update