Moody's assigns B2 to Sirona HoldCo

Moody's Investors Service said it assigned a B2 corporate family rating and a probability of default rating of B2-PD to Sirona HoldCo (Seqens). Moody's also gave a B2 instrument rating to the €830 million senior secured term loan B due in 2028 and €130 million senior secured revolving credit facility due 2028 issued by Sirona BidCo France. The outlook both entities is stable.

Moody's plans to withdraw all ratings and the outlook on Seqens Group Holding and its subsidiaries once its equivalent €647 million senior secured term loans B due 2023 and the €90 million senior secured revolver due in June 2022 raised by Seqens Group Bidco have been repaid.

"The assignment of the B2 rating to Seqens reflects its improved business mix by focusing on the relatively resilient pharma end market, by carving out its mineral specialties business and the combination with Wavelength Pharmaceutical (Wavelength), a medium sized API developer and manufacturer," said Janko Lukac, a Moody's vice president and senior analyst, in a press release.

"Furthermore, the adequate liquidity provides a buffer for the next two to three years when free cash flow generation will be very limited due to high growth capex," Lukac added.

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