S&P gives B to Solina term loan

S&P said it assigned a B long-term issuer credit rating to Solina Group Holding, the new owner and holding company of France-based ingredients manufacturer Solina.

S&P also assigned a B issue rating to the proposed senior secured term loan B, which has a 3 (50%) recovery rating.

The outlook is stable.

Private-equity firm Astorg is acquiring a majority stake in Solina, financed by a new €567.5 million senior secured term loan B and supported by an unrated €100 million revolving credit facility, expected to be undrawn at closing, S&P said.

“Although the buyout transaction will push adjusted debt to EBITDA to about 7.0x, we believe Solina's resilient positioning on the seasoning market, its relatively limited exposure to the food service segment, and its profitability focus, will allow gradual deleveraging toward 6.5x by 2022,” S&P said in a news release.

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