S&P gives Olympus Water loan, notes B-

S&P said it assigned B- issue and 3 recovery ratings to Olympus Water Holdings IV LP’s (Solenis) planned $750 million senior secured term loan B, and $1.625 billion and €500 million of senior secured first-lien notes. The 3 recovery rating indicates meaningful (50-70%; rounded estimate: 50%) recovery in default.

Concurrently, S&P affirmed the issuer’s ratings, including the CCC+ senior unsecured note ratings, and removed them from CreditWatch with developing implications, where they were placed on March 9, following the company's announcement of the proposed acquisition of Diversey Holdings Ltd. The outlook is now stable.

“The stable outlook reflects our expectation that the transaction will be leverage-neutral on a pro forma basis, with S&P Global Ratings-adjusted debt to EBITDA remaining 6x-7x in 2023. Beyond 2023, we anticipate marginal deleveraging from EBITDA expansion as the company integrates Diversey and realizes modest cost synergies,” the agency said in a statement.

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