S&P shifts Element Materials view to negative

S&P said it changed the outlook for Element Materials Technology Ltd. to negative from stable on plans for increased debt.

The company plans to raise its debt by about $200 million by drawing down on its facilities, along with an incremental increase to its second-lien and payment-in-kind loans to fund acquisitions that are expected to close by year-end, the agency said.

“We believe that material deleveraging over the rating horizon is unlikely given Element's continued financial sponsor ownership. With its ongoing financial sponsorship, through Bridgepoint's support and the new minority stake investment by Temasek Holdings in July 2019, we do not expect cash leverage to fall below 5.0x over the rating horizon,” said S&P in a press release.

S&P affirmed its B rating on the company and its financing subsidiaries.

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