Minerva: Balancing an Interesting Credit Story with Acquisition Risks

We believe a better entry point into these notes may emerge in the future based on our expectation of a weakening credit profile.

Executive Summary

• We are initiating coverage on Minerva with an Underperform recommendation. We expect the company to encounter challenges in free cash flow generation and credit metrics deterioration, with net leverage exceeding 4x and interest coverage modestly over 1x in the 6 to 12 months following the acquisition. Despite these concerns, we view Min…