S&P rates Welltec notes B-

S&P said it rated Welltec International ApS’ planned $325 million of bonds B-.

Concurrently, the agency affirmed its B- rating on Welltec but changed the outlook to stable from negative.

Welltec plans to use the proceeds and a €50 million equity injection to refinance its debt.

“The refinancing eliminates previous liquidity concerns, which, together with improved market conditions, will allow the company to focus on growth The looming November 2022 maturity of the $340 million senior secured notes previously posed a tangible risk to the maintenance of the B- rating. Now with a new capital structure in place, $325 million of senior secured notes and $40 million of financial leases, as well as debt reduction through the shareholders' $50 million equity injection, we see the company on a stronger footing,” S&P said in a press release.

The agency said it forecasts EBITDA projection of €90 million-€100 million in 2021 and 2022, and projects leverage of 3.5x-4x, which is in line with its threshold for the current rating.

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