Moody's rates Bormioli notes B3

Moody’s Investors Service said it assigned a B3 rating to Bormioli Pharma SpA’s planned €350 million of senior secured floating-rate notes due 2028 and revised the outlook to stable from negative.

The rating is the same as that of Bormioli’s €280 million of backed senior secured notes due 2024, which the company is expected to repay with the proceeds from the new notes. Moody’s said it will withdraw the 2024 rating once they are repaid.

The capital structure will also include a new €65 million super senior revolving credit facility due 2028, which will replace the existing €55 million super senior revolver.

"Today's action reflects Bormioli Pharma's improved debt maturity profile pro forma for the transaction with no meaningful debt due before 2028 and positive demand dynamics underpinning the resilient pharma packaging industry combined with the full effect of price increases implemented in 2022 which will support earnings growth over the coming years and allow for gradual deleveraging," said Donatella Maso, a Moody's vice president, senior credit officer and lead analyst for Bormioli Pharma, in a press release.

"Although the outlook is stable, the B3 rating is weakly positioned within the rating category given the high leverage and Moody's expectation of weak free cash flow (FCF) for the next 18 months leaving the company relatively limited headroom for underperformance, "Maso added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.