S&P rates Polynt, notes BB-

S&P said it gave BB- ratings to SCIL IV LLC (Polynt Group) and its planned €1.3 billion equivalent of senior secured notes due 2028, with a 3 recovery rating, reflecting an expectation of 65% recovery in default.

Private equity investors Black Diamond is acquiring Investindustrial's stake in SCIL IV, parent company of Polynt Group and boosting the stake to 85%.

The proceeds will be used for the acquisition and to refinance Polynt’s capital structure. The company also plans to secure an €85 million super senior revolving credit facility due 2028.

“We forecast S&P Global Ratings-adjusted leverage of about 3.6x at year-end 2021, moderately increasing to about 3.8x-4.2x in 2022 and 2023, and funds from operations (FFO) to debt of about 20%-21% in 2021, declining to about 14%-16% in 2022 and 2023,” S&P said in a press release.

The outlook is stable.

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