S&P gives Winterfell, loans B

S&P said it assigned preliminary B ratings to Winterfell Financing Sarl and its planned €1.345 billion senior secured term loan to refinance its capital structure, alongside a €200 million revolving credit facility, fully available at closing.

CVC Capital Partners agreed to acquire 100% of Stark Group with a financing package including Winterfell’s seven-year term loan and a €200 million 6.5-year senior secured revolver, which the agency expects will remain undrawn at the transaction’s closing.

“Overall, the capital structure remains highly leveraged in our view, and our financial risk profile continues to reflect the group’s private-equity ownership and a potentially aggressive strategy to maximize shareholder returns over the investment horizon,” S&P said in a press release.

The outlook is stable. The outlook reflects the company’s improving profitability, translating into further EBITDA growth and strong free operating cash flow, leading to a reduction in debt to EBITDA below 6.5x in fiscal 2022, the agency said.

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