S&P rates Nextpharma, loan B

S&P said it assigned B ratings to Nextpharma Topco GmbH (Bowtie German Bidco GmbH) and its planned €290 million term loan.

“Over the last three years, the company delivered organic growth of about 7% on average, supported by margin expansion. We project revenue will reach at least €350 million by 2022, reflecting the integration of the Lonza sites and new contract wins, with the company's S&P Global Ratings-adjusted EBITDA margin expanding to 18% in 2022 from 15% in 2020,” S&P said in a press release.

Last month, Nextpharma agreed to buy two contract manufacturing facilities from Lonza Group, using a €290 million proposed term loan, alongside a significant equity injection from the financial sponsor Capvest. Concurrently, the debt issuance will finance the fund-to-fund transfer and refinance debt.

The outlook is stable. The agency said it forecasts S&P Global Ratings-adjusted debt to EBITDA will remain in the 5x-6x range over the next 18-24 months.

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