S&P rates Syntegon, loan B

S&P said it assigned B ratings to Platin 2025 Investments (Syntegon) and planned €1.03 billion senior secured term loan B. The recovery rating on the loan is 3.

“Syntegon, a leading manufacturer of critical pharma and food processing and packaging systems, expects revenue of more than €1.3 billion in 2021 and we anticipate Syntegon will post adjusted debt to EBITDA at about 7x in 2022, with a gradual deleveraging to about 6x in 2023,” S&P said in a press release.

The agency said it sees an EBITDA margin of about 11.3% for 2022, increasing to 12.5%-13% in 2023 thanks to management's measures implemented.

Syntegon will use the term loan in a refinancing. It will also have a new €150 million revolving credit facility and a new €175 million pari passu guarantee facility. As of the transaction's close, Syntegon has about €65 million of cash on its balance sheet. The €150 million revolver is undrawn as of closing.

The outlook is stable.

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