Research Update: U.K.-Based LGC Science Group Ltd. (Loire UK Midco 3 Ltd.) Outlook Revised To Stable; 'B' Rating Affirmed

Loire UK Midco 3 Ltd. (LGC), a global life sciences measurement and testing solutions company, announced on March 26, 2021, that it will issue term loan facilities (U.S. dollar and euro tranches) amounting to £496 million-equivalent, and make a dividend payout of £300 million to its shareholders. Despite a tough environment for many business and consumer service companies, LGC's operating performance has benefited from COVID-19-related tailwinds, outperforming expectations in fiscal year (FY) ending March 31, 2021. We expect continued strong growth in the group's free operating cash flow (FOCF) and EBITDA margin performance relative to historical levels and believe the rating headroom at the 'B' level has increased. We therefore revised our outlook on LGC to stable from negative. We

...- Loire UK Midco 3 Ltd. (LGC), a global life sciences measurement and testing solutions company, announced on March 26, 2021, that it will issue term loan facilities (U.S. dollar and euro tranches) amounting to ú496 million-equivalent, and make a dividend payout of ú300 million to its shareholders. - Despite a tough environment for many business and consumer service companies, LGC's operating performance has benefited from COVID-19-related tailwinds, outperforming expectations in fiscal year (FY) ending March 31, 2021. We expect continued strong growth in the group's free operating cash flow (FOCF) and EBITDA margin performance relative to historical levels and believe the rating headroom at the 'B' level has increased. - We therefore revised our outlook on LGC to stable from negative. We affirmed the 'B' long-term issuer credit rating on the group and the related 'B' issue and '3' recovery ratings on its secured term loans. We also assigned 'B' issue ratings and a '3' recovery rating to...

Research Update