S&P puts Global Closure on positive watch

Standard & Poor’s said it placed the B long-term corporate credit rating on Financiere Daunou 5 Sarl and its debt-issuing subsidiary GCS Holdco Finance I SA on CreditWatch with positive implications.

The company is also referred to as Global Closure Systems or GCS, S&P said.

The agency also said it placed the B rating on the company’s €350 million senior unsecured notes due 2018 on CreditWatch with positive implications.

The CreditWatch placement follows news that RPC Group intends to acquire GCS from its current owner, private equity firm PAI Partners, S&P said.

RPC and PAI are about to sign a sale-and-purchase agreement, but the transaction will have to pass certain regulatory checks before it is completed, the agency said.

RPC expects the transaction to close in the first quarter of 2016, S&P added.

The agency said it believes that the consolidation of GCS within the larger and less-leveraged RPC Group would be likely to improve the company’s creditworthiness.

For the financial year ending March 31, 2015, RPC Group reported a net debt-to-EBITDA of 3.5x compared with Global Closure’s unadjusted reported net debt-to-EBITDA of about 8x for the financial year ending December 2014, S&P said.

© 2015 Prospect News.
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