Research Update: Luxembourg-Based Pharma Company Rossini Acquisition Rated 'B'; Outlook Stable

Luxembourg-based pharma company Rossini Acquisition Sarl successfully acquired FIMEI Spa in early December 2018. Rossini is the holding company that controls 51.8% (53.1% net of Treasury shares) of Italy-based pharmaceutical company Recordati SpA. The total consideration of the acquisition is about €3 billion. The company successfully raised €1,300 million senior secured notes due 2025 (€650 million fixed-rate notes and €650 million floating-rate notes) to finance the acquisition, with an equity contribution of about €1,020 million. The Recordati family received part of the consideration in the form of deferred and structurally subordinated notes of €750 million. Management reinvested about €78 million into the business. We are assigning our 'B' long-term issuer credit rating to Rossini Acquisition Sarl, the holding company of

...+ Luxembourg-based pharma company Rossini Acquisition Sarl successfully acquired FIMEI Spa in early December 2018. Rossini is the holding company that controls 51.8% (53.1% net of Treasury shares) of Italy-based pharmaceutical company Recordati SpA. The total consideration of the acquisition is about 3 billion. + The company successfully raised 1,300 million senior secured notes due 2025 (650 million fixed-rate notes and 650 million floating-rate notes) to finance the acquisition, with an equity contribution of about 1,020 million. The Recordati family received part of the consideration in the form of deferred and structurally subordinated notes of 750 million. Management reinvested about 78 million into the business. + We are assigning our 'B' long-term issuer credit rating to Rossini Acquisition Sarl, the holding company of FIMEI SpA. We are assigning our 'B' issue rating to the senior secured notes issued by Rossini Sarl. + The stable outlook reflects our forecast that Recordati's operating...

Research Update