S&P rates Reno de Medici, notes B

S&P said it assigned preliminary B ratings to Rimini Bidco SpA (Reno de Medici) and its planned €445 million of senior secured, sustainability-linked floating-rate notes due 2026. It also plans to raise a new €75 million revolver.

“Our ratings on RDM are supported by its leading market positions, exposure to fairly stable end-markets and low capital expenditure (capex) needs. RDM has strong market positioning in the white-lined chipboard and solidboard markets. It also sells more than 60% of its products to the noncyclical food industry, which is fairly stable and still growing, albeit at a modest pace,” the agency said in a press release.

Apollo Global Management, which owns a majority stake in the company, will use the note proceeds to buy the shares it doesn’t already own.

The outlook is stable, indicating a forecast RDM will generate positive, but modest, FOCF and will lower its S&P Global Ratings-adjusted leverage to about 5.3x-5.7x during the next 12 months, the agency said.

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