Research Update: Villa Dutch Bidco B.V., Holding Company Of Belgium-Based Staffing Group House of HR, Rated 'B', Outlook Stable

In November 2022, Bain Capital became the largest shareholder of House of HR when it acquired 55% of the staffing group through Villa Dutch Bidco B.V. The transaction was funded through the issuance of a €1,020 million senior secured term loan B (TLB), a €125 million delayed draw first-lien term loan, drawings under a €310 million second-lien facility, and €415 million 9% senior secured notes issued in December 2022, in addition to equity contribution from the new shareholder and reinvestment from existing shareholders. We assigned our 'B' long-term issuer credit rating to Villa Dutch Bidco and our 'B' issue rating, with a '3' recovery rating, to the senior secured debt. The stable outlook reflects our view that House of HR

...- In November 2022, Bain Capital became the largest shareholder of House of HR when it acquired 55% of the staffing group through Villa Dutch Bidco B.V. - The transaction was funded through the issuance of a 1,020 million senior secured term loan B (TLB), a 125 million delayed draw first-lien term loan, drawings under a 310 million second-lien facility, and 415 million 9% senior secured notes issued in December 2022, in addition to equity contribution from the new shareholder and reinvestment from existing shareholders. - We assigned our 'B' long-term issuer credit rating to Villa Dutch Bidco and our 'B' issue rating, with a '3' recovery rating, to the senior secured debt. - The stable outlook reflects our view that House of HR will continue generating solid revenue and integrate recent acquisitions while maintaining steady profitability, with an S&P Global Ratings-adjusted EBITDA margin above 11% and adjusted leverage decreasing to 6.0x-6.5x by end-2023....

Research Update