S&P revises Syntegon outlook to negative

S&P said it revised its outlook for Syntegon (Plantin 2025 Investments) to negative from stable and affirmed the B ratings on the company and its senior secured notes; the 3 recovery rating on the notes is unchanged.

Syntegon plans to issue a €100 million add-on to its outstanding €1.03 billion senior secured term loan B due 2028, using proceeds to repay the €80 million drawn revolving credit facility and add €20 million in cash to the balance sheet.

“As a result, we updated our base-case scenario and expect Syntegon will not reduce its high leverage to less than 6.5x before 2024, which we view as in line with the rating,” S&P said in a press release.

The weaker outlook reflects the delay in deleveraging, forecasted negative free operating cash flow and lower-than-expected profitability in 2023, the agency said.

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