S&P rates Constantia loans B

Standard & Poor’s said it assigned a B+ long-term corporate credit rating to Constantia Flexibles Holding GmbH, the immediate parent of Constantia Flexibles GmbH.

The agency also said it assigned a B rating to the €1.21 billion senior secured facilities, including to the €125 million senior secured revolving credit facility.

The outlook is stable.

The ratings reflect the company’s fair business risk profile and aggressive financial risk profile, S&P said.

Wendel, an investment holding company, together with existing family owners the Turnauer Family Trust, completed the purchase of Constantia Flexibles for about €2.3 billion.

Wendel financed the acquisition with cash equity and by placing the first-lien term loans, including a euro-denominated tranche for €1.01 billion, under which the company drew down about €886 million and has a €125 million senior secured revolver available with the same seniority as the term loan. The loans also include another €200 million tranche.

The ratings reflect Constantia’s market position as the world’s fourth-largest flexible packaging and labels supplier in a very fragmented and competitive industry, S&P said.

The group enjoys leading positions in a diverse set of growing segments such as food foil and pharmaceuticals blister packaging, as well as beer and in-mold labels, the agency said.

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