S&P elevates Schur Flexibles

S&P said it raised its long-term issuer credit rating on Schur Flexibles GmbH to CCC+ from SD (selective default).

S&P also assigned a CCC+ issue rating (recovery rating of '3') to the €160 million liquidity facilities. At the same time, the agency assigned a CCC- issue rating (recovery rating of 6) to the €147 million take-back debt.

The agency withdrew its D issue ratings on the €475 million term loan B (as the loan has now been restructured).

The outlook is stable.

Schur Flexibles underwent a capital restructuring on Sept. 28 via a consensual agreement with lenders, under which the group was transferred to its lenders (led by Apollo).

Under the restructuring, Schur Flexibles received €160 million of new loans (of which €110 million were drawn at closing). The group also rolled over €147 million of existing bank debt and wrote off €413 million in bank debt and supply chain financing (excluding leases) as well as around €41.3 million in shareholder loans.

“Although we view Schur Flexibles as highly leveraged and its cash generation as perilous, we believe its liquidity will be supported by its current cash balance and €50 million available under the new liquidity facility,” S&P said in a news release.

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