S&P rates Kersia, loan B

S&P said it assigned a B rating to Kersia International and a preliminary B rating with a 3 recovery rating to its €420 million term loan B.

IK Partners plans to acquire the company with debt financing.

“The B rating reflects a highly flexible cost base and asset-light model with solid cash flow. In addition to highly flexible cost structure where about 80%-85% of the total cost is variable, the company benefits from a very asset-light business model since the manufacturing of products is not very complex,” S&P said in a press release.

Kersia plans to issue €450 million of new debt, including a €350 million term loan B and a €100 million revolving credit facility. It also plans to issue a delayed €70 million TLB and €50 million of payment-in-kind instruments issued outside the restricted group, which S&P said it views the debt related to an imminent acquisition.

The outlook is stable. The outlook reflects the view Kersia will continue to grow profitably, using organic growth with strategic acquisitions, the agency said.

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