S&P assigns Maravai loans B-

S&P said it assigned B- ratings to Maravai Topco Holdings LLC’s planned $150 million revolver and $600 million first-lien term loan. The agency also assigned a 3 recovery rating indicating expectations for a meaningful recovery in a default.

Proceeds will be used to refinance debt, fund the repurchase of a Cygnus minority interest and a distribution to shareholders, and pay transaction fees and expenses.

“The refinancing limits leverage impact because the increased debt is mostly offset by rapid revenue and EBITDA growth, leading to our projection of 7x leverage by the end of 2020, compared to 7.8x at the end of 2019. Maravai reported significant growth of 56% in the first half of 2020 on increased demand for some of its products, including its CleanCap reagent product, from the Covid-19 pandemic,” S&P said in a press release.

The agency also affirmed Maravai’s B- issuer rating.

The outlook is stable.

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