S&P rates Synthon, loan B

S&P said it assigned B ratings to Stamina Bidco BV (Synthon) and its planned €360 million term loan. The loan’s recovery rating is 3. The company also plans to secure a €70 million revolving credit facility.

“Despite Synthon's product and customer concentration, its intellectual property (IP) retention and vertically integrated business model are key credit strengths. The group is a niche European finished form products manufacturer, mostly focused on the business-to-business (B2B) space (91% of its 2021 estimated revenue), where it serves more than 200 - pharmaceutical companies with market authorization rights for both generic and patent-protect drugs,” the agency said in a press release.

The company plans to use the proceeds to refinance its capital structure.

The outlook is stable. “Profitable growth, supported by investment, should allow Synthon's S&P Global Ratings-adjusted leverage to stabilize at 5x-6x over the next couple of years, although capital expenditure (capex) will absorb most operating cash flows over the next 12-18 months,” the agency said.

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