Research Update: Spanish Customer Relationship Management And Outsourcing Firm Giralda Holding Conexion Affirmed At 'B+'; Outlook Stable

Giralda Holding Conexion, S.L.U. (Konecta) has announced an agreement to acquire Rocket Hall, a Spain-based customer relationship management (CRM) and outsourcing player specialized in technology and digital transformation. Konecta will fund the transaction with new debt through an add-on of €100 million to its existing €320 million senior secured term loan B and the rest with cash from its balance sheet. We forecast that the acquisition will slightly increase Konecta's leverage metrics but expect they will remain consistent with an aggressive financial risk profile. We are affirming our 'B+' ratings on Giralda Holding Conexion and its term loan B, which was upsized to €420 million. The recovery rating remains at '3', reflecting our expectation of 50%-70% recovery (rounded estimate: 55%)

...- Giralda Holding Conexion, S.L.U. (Konecta) has announced an agreement to acquire Rocket Hall, a Spain-based customer relationship management (CRM) and outsourcing player specialized in technology and digital transformation. - Konecta will fund the transaction with new debt through an add-on of 100 million to its existing 320 million senior secured term loan B and the rest with cash from its balance sheet. - We forecast that the acquisition will slightly increase Konecta's leverage metrics but expect they will remain consistent with an aggressive financial risk profile. - We are affirming our 'B+' ratings on Giralda Holding Conexion and its term loan B, which was upsized to 420 million. The recovery rating remains at '3', reflecting our expectation of 50%-70% recovery (rounded estimate: 55%) in a default. - The outlook is stable because we forecast organic growth of 4%-5% for Konecta over the next 12-24 months, due to favorable market trends, with debt to EBITDA close to 4x, and funds...

Research Update