S&P revises Schoeller view to positive

S&P said it revised its outlook for Schoeller Packaging BV to positive from stable and affirmed its CCC+ rating. At the company’s request, the agency withdrew the rating.

Schoeller refinanced its €250 million senior secured notes in December with a five-year €125 million senior secured term loan and equity. It also extended the maturity of its €30 million revolving credit facility by another four and a half years.

“Schoeller's transaction addresses our previous liquidity and refinancing concerns, with S&P Global Ratings-adjusted debt improving to €355 million from €446 million and prompting us to estimate adjusted net debt to EBITDA at 8.7x for end-2023 (versus 9.6x under our previous forecasts),” the agency said in a press release.

S&P said it expects Schoeller to boost its S&P Global Ratings-adjusted EBITDA to €60 million in 2024 and €70 million in 2025; however, it does not forecast positive free cash flow until 2025.

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