S&P rates SGD Pharma, loans B

S&P said it assigned preliminary B ratings to SGD Pharma (Silica SAS) and its expected €500 million seven-year senior secured term loan B and anticipated €90 million revolving credit facility. The revolver is expected to be undrawn at closing.

“SGD Pharma's strong market positions in the pharma packaging industry (which we consider fairly stable), long-standing customer relations and pricing power support its business risk profile. The company also benefits from the stringent regulatory requirements and qualification processes, typical of the pharma market, which constitute solid entry barriers for competitors,” S&P said in a press release.

PAI Partners will use the term loan proceeds to help acquire SGD Pharma.

The outlook is stable. “We forecast S&P Global Ratings-adjusted debt to EBITDA at about 6.8x in the next 12 months, and expect that free operating cash flow (FOCF) will be negative in 2021 but recover thereafter,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.