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

Macquarie European Infrastructure Fund 6 (MEIF6) is acquiring Beauparc, an integrated waste-to-resource operator, via a new entity Broom Holdings Bido Ltd., funded with a new €525 million term loan B (TLB) and equity contribution of 59% (representing €840 million). Pro forma the transaction, 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 have assigned our preliminary 'B' ratings to Broom Holdings and its proposed 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 payment default. The stable outlook reflects our

...- Macquarie European Infrastructure Fund 6 (MEIF6) is acquiring Beauparc, an integrated waste-to-resource operator, via a new entity Broom Holdings Bido Ltd., funded with a new 525 million term loan B (TLB) and equity contribution of 59% (representing 840 million). - Pro forma the transaction, 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 have assigned our preliminary 'B' ratings to Broom Holdings and its proposed 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 payment default. - The stable outlook reflects our view that continued organic growth and successful execution of growth initiatives, will result in S&P Global Ratings-adjusted EBITDA margins of around 17.5%, positive double-digit free operating cash flow...

Research Update