S&P gives Sofima, notes B

S&P said it assigned preliminary B ratings to Sofima Holding SpA and its planned €1.25 billion-€1.3 billion in senior secured notes. The preliminary recovery rating on the notes is 3, indicating meaningful (50%-70%; rounded estimate: 55%) recovery prospects at default.

Sofima, jointly controlled by the Vacchi family and BC Partners, through a leveraged buyout, is raising funds to tender the full share capital on the market and refinance the financial debt of its parent IMA SpA, the agency said.

“If the deal closes as expected, Sofima’s S&P Global Ratings-adjusted debt to EBITDA would be slightly above 9x in 2020 pro forma the transaction. For 2021, we expect leverage of 8x-8.5x due to increasing sales and EBITDA after the Covid-19 pandemic.

The outlook is stable.

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