S&P rates Guala Closures notes B+

S&P said it affirmed its B+ issuer credit rating on Guala Closures SpA and the B+ issue rating on the outstanding €500 million senior secured notes due 2028.

S&P also assigned a B+ issue rating to a proposed €350 million senior secured notes due 2029.

The outlook is stable.

Guala Closures plans to issue €350 million senior secured floating-rate notes due 2029 and upsize its super senior revolving credit facility due 2027 to €150 million from €96 million, S&P said.

Guala Closures will use the proceeds from the new notes to pay €250 million dividends to the shareholders, and transaction-related expenses. The remainder will remain on the balance sheet to fund future bolt-on acquisitions.

“Although the proposed transaction increases the group's debt, we expect this to be partially offset by EBITDA growth,” S&P said in a news release.

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