Moody's alters Syntegon view to negative

Moody's Investors Service said it changed the outlook on Platin2025 Acquisition Sarl (Syntegon) to negative from stable. Concurrently, Moody's affirmed Syntegon's B2 corporate family rating, B2-PD probability of default rating and the B2 ratings for the backed senior secured bank credit facilities, including the planned €100 million fungible add-on

“The negative outlook reflects Syntegon's highly leveraged capital structure and Moody's expectation for a delayed deleveraging trajectory compared to our previous estimates, with Moody's-adjusted gross leverage expected to be around 8x in 2023 and potentially remaining above 6x in 2024. The negative outlook balances the uncertain pace and degree of credit metrics recovery to levels commensurate for its B2 rating with the adequate liquidity program, including the absence of meaningful maturities prior to 2028, and the favorable demand fundamentals supported by Syntegon's focus on end market such as the pharmaceuticals and food industries,” the agency said in a statement.

The proceeds will be used to repay €80 million of revolver borrowings, to fund transaction expenses and add the rest to the balance sheet cash.

© 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.