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Prospect News home > News index > List of issuers L > Headlines for Luxembourg Investment Co. 437 Sarl > News item |
S&P gives Heubach parent B
S&P said it gave preliminary B ratings to Luxembourg Investment Co. 437 Sarl, the intermediate parent of Heubach Group, and its planned dollar-denominated term loan for up to the equivalent of CHF 560 million and $125 million revolver.
In June, Heubach and SK Capital agreed to acquire the majority of Clariant AG's pigments business.
“SK Capital, Heubach, and Clariant AG will also contribute CHF 572 million of cash common equity. The proceeds will be used to fund the buyout and pay the transaction fees. The transaction includes a CHF 50 million earn-out subject to performance conditions for Clariant Pigments and the pro forma group. The earn-out would be funded by half incremental debt and half equity,” S&P said in a press release.
The agency said it forecasts adjusted leverage of 5.2x-5.5x on closing of the deal. “While we view the company's financial profile as highly leveraged, we believe that leverage is slightly lower than other transactions we have seen in the sector. We also forecast free operating cash flows (FOCF) of about CHF 15 million-CHF 20 million in 2022-2023.”
The outlook is stable.
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