S&P gives PHM SF, loan B

S&P said it assigned preliminary B ratings to PHM SF Dutch Bidco (Signature Foods) and its new term loan.

Signature Foods will have a €62 million revolving credit facility undrawn at closing, a €341 million term loan and €87 million of payment-in-kind notes.

“We forecast that over the next two years SF will have adjusted debt to EBITDA of 6x-6.5x, fund from operations (FFO) cash interest of about 4x, and positive FOCF,” S&P said in a press release.

The outlook is stable. “We forecast the group's S&P Global Ratings-adjusted EBITDA margin will remain at 17%-18.5% over the next 12-18 months, given that key branded products and efficient operating cost structure should enable the group to withstand potential high price pressure and raw materials inflation,” the agency said.

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