Moody's assigns Armor Iimak, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to EN6 SAS (Armor Iimak). Moody's also gave B2 ratings to Armor Iimak's €450 million senior secured term loan B and its €85 million senior secured revolving credit facility .

“The B2 CFR reflects the company's (i) established and leading position in the consolidated and niche market of thermal transfer ribbons (TTR); (ii) its vertically integrated business model, with in-house expertise in all stages of the ink manufacturing process from the sourcing of ingredients to the production; (iii) its exposure to the relatively resilient packaging end market; and (iv) high Moody's-adjusted EBITDA margins in the next 12 months and moderate capex requirements, translating into a capacity for sustained good free cash flow generation,” the agency said in a press release.

The proceeds and an equity contribution will be used to pay the purchase price of Armor Iimak and related fees and expenses. Management reinvested into the company and will own 60% and Astorg will own 40% stake in Armor.

The outlook is stable.

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