Research Update: Parent Of AutoScout24, Speedster Bidco GmbH, Assigned Preliminary 'B-' Rating; Outlook Positive; Proposed Debt Rated

Private equity firm Hellman&Friedman (H&F) will acquire 100% of AutoScout24 (AS24), an operator of online car classified ad platforms, from Scout24 AG, with a business valuation of €2.9 billion. H&F will fund the acquisition with €1.8 billion in equity instruments (a part will be shareholder loans) and €1.1 billion of new debt. We are assigning our preliminary 'B-' long-term issuer credit rating to AS24's parent company, Speedster Bidco GmbH. At the same time, we are assigning our preliminary 'B-' issue rating and preliminary '3' recovery rating to the company's proposed first-lien facilities and our preliminary 'CCC' issue rating and preliminary '6' recovery rating to the company's second-lien term loan. The positive outlook reflects a one-in-three possibility of an

...- Private equity firm Hellman & Friedman (H&F) will acquire 100% of AutoScout24 (AS24), an operator of online car classified ad platforms, from Scout24 AG, with a business valuation of 2.9 billion. - H&F will fund the acquisition with 1.8 billion in equity instruments (a part will be shareholder loans) and 1.1 billion of new debt. - We are assigning our preliminary 'B-' long-term issuer credit rating to AS24's parent company, Speedster Bidco GmbH. - At the same time, we are assigning our preliminary 'B-' issue rating and preliminary '3' recovery rating to the company's proposed first-lien facilities and our preliminary '###' issue rating and preliminary '6' recovery rating to the company's second-lien term loan. - The positive outlook reflects a one-in-three possibility of an upgrade if AS24's growth of operations translated into rapid EBITDA growth and if the company proactively repaid some debt and reduced its S&P Global Ratings-adjusted leverage to 7x or below in the next 18 months while...

Research Update