S&P rates Cullinan, notes B+

S&P said it gave preliminary B+ ratings to Cullinan Holdco and its planned €600 million of five-year senior secured bonds.

Cullinan, majority owned by Apollo Global Management, will use the proceeds to help it acquire an 80% stake in AS Graanul Invest.

“We forecast EBITDA of €130 million-€160 million annually, and free operating cash flow (FOCF) of €70 million-€80 million, indicating robust FOCF to debt of 11%-13% during 2021-2023. This is thanks to an EBITDA margin that is stronger than peers' and limited annual capex plans of €30 million. We anticipate, however, that the healthy cash flow generation could be consumed by shareholder remuneration, and therefore potentially not lead to any meaningful debt reduction,” S&P said in a press release.

The outlook is stable.

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