Research Update: Italian Higher Education Services Group Paganini Bidco SpA (Multiversity) Rated 'B'; Outlook Positive

On Oct. 28, CVC-owned Paganini Bidco SpA acquired the remaining 50% of Multiversity s.r.l., the leading Italian online university platform. The acquisition was financed through €765 million of floating rate notes, a €222 million bridge to cash facility, and a €100 million super senior revolving credit facility (RCF), which was €39 million drawn at closing; CVC contributed €42 million of equity. Within 18 months from the acquisition, Paganini Bidco will reverse merge into Multiversity s.r.l. and its intermediate holding companies, such that post-transaction, Multiversity will assume Paganini's debt obligations and be the rated entity. We assigned our 'B' long-term issuer credit rating to Paganini Bidco and our 'B' issue rating, with a '3'(55%) recovery rating, to the company's floating rate

...- On Oct. 28, CVC-owned Paganini Bidco SpA acquired the remaining 50% of Multiversity s.r.l., the leading Italian online university platform. - The acquisition was financed through 765 million of floating rate notes, a 222 million bridge to cash facility, and a 100 million super senior revolving credit facility (RCF), which was 39 million drawn at closing; CVC contributed 42 million of equity. - Within 18 months from the acquisition, Paganini Bidco will reverse merge into Multiversity s.r.l. and its intermediate holding companies, such that post-transaction, Multiversity will assume Paganini's debt obligations and be the rated entity. - We assigned our 'B' long-term issuer credit rating to Paganini Bidco and our 'B' issue rating, with a '3'(55%) recovery rating, to the company's floating rate notes. - The positive outlook reflects our expectation that the company will achieve substantial EBITDA growth, on the back of a growing student base, such that S&P Global Ratings-adjusted leverage...

Research Update