Moody's rates Solina loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and B2-PD probability of default rating to Solina Group Holding (Solina) and assigned B2 ratings to the €567.5 million senior secured term loan B and to the €100 million senior secured revolving credit facility borrowed by Powder Bidco SAS, a fully owned subsidiary of Solina, and the top entity of the restricted group.

The outlook is stable.

Proceeds from the term loan together with equity contribution (including preferred shares and convertible notes that receive equity treatment under Moody's methodologies) will be used to finance the acquisition of the company by a new fund managed by Astorg, to repay the company's existing debt and to pay transaction fees and expenses.

“The B2 rating assigned to Solina balances the stable, albeit mature, nature of the food industry, the company’s leading position as key supplier of ingredients and seasoning solutions across Europe and its good track record of generating stable operating margins and free cash flow, with its relatively high financial leverage and acquisition appetite that might constrain any significant deleveraging,” said Paolo Leschiutta, a Moody's senior vice president and lead analyst for Solina, in a news release.

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