S&P rates Esmalglass-Itaca facilities B

S&P said it affirmed its B+ long-term corporate credit rating on Pigments II BV, the current parent company of Esmalglass-Itaca, and affirmed the B+ issue rating on the group's existing facilities. The

recovery rating is unchanged at 3 (rounded estimate 55%).

At the same time, the agency assigned its preliminary B long-term corporate credit rating to LSFX Flavum Bidco SL, which will issue the group's proposed new debt.

The outlook is stable.

S&P assigned its B issue rating to the group's proposed new facilities, to be issued by LSFX Flavum Bidco SL, including a new €60 million revolving credit facility and a new €375 million term loan B. The recovery rating is 4 (rounded estimate 45%).

“Private equity firm Lone Star Funds is buying Esmalglass-Itaca and plans to refinance its existing debt. We expect the new owner to display an increased tolerance for higher leverage and a less conservative financial policy, increasing the potential for higher shareholder returns in the future,” the agency said in a news release.

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