Research Update: Luxembourg-Based Pharma Company Rossini Acquisition Assigned Preliminary 'B' Rating; Outlook Stable

Funds advised by a consortium of private equity funds led by CVC Capital Partners and co-investors are acquiring FIMEI SpA, the holding company that controls about 53.3% of Italy-based pharmaceutical company Recordati SpA. The total consideration of the acquisition is €3.033 billion. The company is raising €1,280 million senior secured notes due 2025 to finance the acquisition. The Recordati family receives part of the consideration in the form of deferred and structurally subordinated notes of €750 million. Management will reinvest about €78 million into the business. We are assigning our preliminary 'B' long-term issuer credit rating to Rossini Acquisition Sarl, the holding company of FIMEI SpA. We are assigning our preliminary 'B' issue rating to the senior secured notes issued

...+ Funds advised by a consortium of private equity funds led by CVC Capital Partners and co-investors are acquiring FIMEI SpA, the holding company that controls about 53.3% of Italy-based pharmaceutical company Recordati SpA. The total consideration of the acquisition is 3.033 billion. + The company is raising 1,280 million senior secured notes due 2025 to finance the acquisition. The Recordati family receives part of the consideration in the form of deferred and structurally subordinated notes of 750 million. Management will reinvest about 78 million into the business. + We are assigning our preliminary 'B' long-term issuer credit rating to Rossini Acquisition Sarl, the holding company of FIMEI SpA. We are assigning our preliminary 'B' issue rating to the senior secured notes issued by Rossini Sarl. + The stable outlook reflects our forecast that Recordati's operating performance should remain resilient over the next 18 months, providing healthy cash flow that enables Recordati to distribute...

Research Update