S&P rates Iris HoldCo, loan B-

S&P said it assigned B- ratings to Iris HoldCo GmbH and its planned €660 million term loan. The loan and a new €120 million revolving credit facility will be secured through financing vehicle Iris BidCo GmbH.

Iris will use the proceeds to finance the Rodenstock acquisition by private equity firm Apax Partners.

“Although we anticipate annual deleveraging on the back of rising EBITDA, Rodenstock's capital structure will likely remain highly leveraged. We forecast Rodenstock will achieve an S&P Global Ratings-adjusted debt-leverage ratio of 8.5x-9x in 2021, declining to 8x-8.5x in 2022 thanks to higher EBITDA,” the agency said in a press release.

S&P assigned a stable outlook. “The stable outlook reflects our view that Rodenstock's operating performance will remain resilient with organic growth and improving adjusted EBITDA margins of about 22%-23% in the next 12 months.”

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