S&P rates Spa Holdings 3 loan B

S&P said it preliminarily gave a B rating to Spa Holdings 3 Oy’s (Ahlstrom-Munksjo Oyj) proposed €1 billion U.S. dollar- and euro-denominated term loan. Spa also plans a €325 million equivalent revolving credit facility, which is expected to be undrawn at closing.

The term loan will be used to help Bain Capital acquire an equity stake of more than 90% in Spa.

The agency also preliminarily assigned Ahlstrom-Munksjö Oyj a B rating. “Ahsltrom-Munksjo’s financial risk profile reflects the company’s high leverage and its financial sponsor ownership. We forecast debt to EBITDA at about 7x and FFO to debt of about 9.5% for year-end 2021,” S&P said in a press release.

The outlook is stable.

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