S&P rates Timber Servicios, loan B

S&P said it gave preliminary B ratings to Timber Servicios Empresariales SA and its planned €1.2 billion term loan. The loans’ recovery rating is 3.

Carlyle is acquiring Altadia from Lone Star Funds. Timber Servicios will be Altadia’s intermediate parent. As part of the deal, the company also plans to secure a €175 million senior secured revolving credit facility due 2028, assumed undrawn at closing.

The company plans to use the loan to refinance its capital structure.

“At closing of the transaction, we expect adjusted debt to EBITDA of about 6.2x, falling to about 5.4x-5.9x in 2022-2023 on the back of higher EBITDA. We expect adjusted leverage will remain below our downgrade trigger of 6.5x. We will withdraw our ratings on LSFX Flavum Bidco SL, the current intermediate company of Altadia, upon completion of the transaction,” S&P said in a press release.

The outlook is stable.

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