Moody's is reviewing the ratings of Oberthur Technologies Group and its subsidiaries with a view to upgrading them. This includes the B2 corporate family rating (CFR), the B2-PD probability of default rating (PDR) and the Caa1 instrument rating on the EUR190 million senior secured notes due in 2020. Moody's is also reviewing the B1 instrument rating on the EUR260 million term loan B, due 2019, and the EUR88 million revolving credit facility (RCF) raised by Oberthur Technologies SA and the US$280 million term loan B, due 2019, raised by Oberthur Technologies of America Corp., both subsidiaries of Oberthur Technologies.According to the ratings agency, its decision to review these ratings for upgrade follows Oberthur Technologies' announcement that it had lodged its registration document 'Document de Base' with the French financial markets authority, on 19 October 2015. This is a first step towards an IPO of the company's shares on the regulated market of Euronext Paris, which is expected before year-end, subject to market conditions and regulatory approval.The IPO proceeds alongside a newly raised EUR470 million credit facility will be used to repay Oberthur Technologies' outstanding senior secured credit facilities, EUR35 million of drawings under the existing EUR88 million RCF, the EUR190 million senior secured notes, part of the outstanding shareholder loans issued by Oberthur Technologies, and transaction fees. On 4 October 2015, Oberthur Technologies received commitment from banks for new credit facilities totaling EUR650 million, including a EUR200 million term loan due 2019, a EUR270 million term loan due 2020, and a EUR180 million revolving credit facility due 2020, which will be undrawn at the closing of the transaction. The commitments under these new facilities are conditional to the IPO.Moody's says it expects to conclude the review process with the closing of the IPO before the end of the year, subject to market conditions and the allocation of its proceeds alongside the proceeds of the term loans for the redemption of the existing debt. The review will also evaluate the company's new ownership structure, financial policy and strategic objectives. At this stage, Moody's says it anticipates that the CFR is most likely to be upgraded by one notch to B1 if the IPO is executed as expected.
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