S&P gives Draslovka, loans B

S&P said it gave preliminary B ratings to Draslovka Holding as and its planned $335 million of senior secured loans.

Draslovka plans to use the proceeds and equity to buy Chemours Mining Solutions for $520 million.

“We view the initial capital structure as aggressive, with adjusted debt to EBITDA estimated at about 4.3x on a pro forma basis at year-end 2021 and potentially moving to above 6x with the addition of up to $150 million of preferred equity in the capital structure, which we view as debt. We anticipate that the combined group will benefit from expanding market demand and sustain its EBITDA margin at about 25%, allowing for moderate deleveraging in the coming years, especially after synergy realization in about two years,” S&P said in a press release.

The outlook is stable.

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