Moody’s rates Zentiva loans B2

Moody’s Investors Service said it rated B2 AI Sirona (Luxembourg) Acquisition Sarl’s (Zentiva) planned first-lien amended and extended facilities to the €1.275 billion senior secured first-lien term loan B, the £174.5 million senior secured first-lien term loan and the €145 million senior secured first-lien revolving credit facility all due in 2028. The agency also revised the outlook to positive from stable and affirmed the company’s B3 ratings.

Zentiva plans to amend and extend the maturities of its current senior secured debt facilities, including its €345 million senior secured second-lien loan.

“The change in outlook to positive primarily reflects Moody's expectation that Zentiva will continue to have strong operating performance that will lead to a continued improvement in key credit metrics, over the next 12-18 months. Over this period of time, Moody's forecasts that the company's Moody's-adjusted gross leverage will trend towards 6x, with positive Moody's-adjusted free cash flow (FCF) generation of around €50 million, and interest coverage ratio, defined as Moody's-adjusted EBITA to interest expense, trending around 2x,” the agency said in a statement.

Moody's noted positively the company’s proactive debt management.

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