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Moody's assigns Platin2025, loans B2
Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Platin2025 Acquisition Sarl, an indirect holding company of Syntegon Holding GmbH. Moody's also assigned B2 instrument ratings to a planned €1.03 billion guaranteed senior secured first-lien term loan B, a €150 million guaranteed senior secured revolving credit facility due 2028, and a €175 million guaranteed senior secured guarantee facility, maturing in 2028, to be issued by Platin2025 Acquisition. The outlook is stable. This is the first time that Moody's is rating Syntegon.
“The rating is initially weakly positioned given Syntegon's highly leveraged balance sheet following the proposed refinancing, as shown by an expected Moody's-adjusted debt/EBITDA ratio of around 7x in 2021 (on a pro forma basis and based on EBITDA that includes one-off expenses),” Moody’s said in a press release.
Term loan proceeds together with balance sheet cash will be used to refinance the pay-in-kind notes and fund a dividend to private-equity firm CVC Capital Partners, who acquired Syntegon from Robert Bosch GmbH in 2020, and expected transaction fees and expenses.
“The stable outlook is predicated on Moody's expectation that Syntegon will continue to successfully execute its profitability improvement program, enabling its Moody's-adjusted EBITA margin to progressively widen towards 12% by 2023 at the latest. Forecast earnings growth thanks to low to mid-single-digit top-line growth and the realization of considerable efficiency gains should support Syntegon to reduce its leverage towards 6x debt/EBITDA over the next 18-24 months,” the agency said.
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