S&P puts Guala Closures on watch

S&P said it placed its B+ ratings on Guala Closures SpA and its senior secured notes on CreditWatch with negative implications.

“We would reassess the company's financial policy if InvestIndustrial took control of Guala Closures. InvestIndustrial owns 29.5% of Guala Closures' share capital (26.4% of voting rights). The private equity firm is seeking to increase its participation in the group via bilateral negotiations with some of the company's shareholders. InvestIndustrial would be obliged to launch a mandatory tender offer for all of Guala Closures' shares if its shareholding increased to 30%,” the agency said in a press release.

The agency noted if InvestIndustrial gains control, the company will most likely, unless waived by lenders, need to refinance the €80 million revolving credit facility and the €455 million of senior secured notes due 2024.

“In resolving the CreditWatch negative placement, we will evaluate the implications of the change in ownership on the company's financial policy. We expect to resolve the CreditWatch upon receiving clarity on the final ownership structure and financial policy of Guala Closures,” S&P said.

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