S&P rates Manuchar, notes B

S&P said it preliminarily assigned B ratings to LSF XI Magpie Bidco BV (Manuchar NV) and its planned five-year euro-denominated senior secured notes.

Lone Star Funds agreed to acquire Manuchar and will use the notes to help fund the acquisition.

“We view the capital structure as highly leveraged, with the relatively low 4.1x-4.3x adjusted debt to EBITDA (including nonrecourse factoring and related transactional funding) on a pro-forma basis at year-end 2022 due to top-of-cycle conditions and expected to weaken to 5.5x-5.8x with normalized EBITDA in 2023,” S&P said in a press release.

“EBITDA stood at $180 million in the 12 months to March 31 and we expect $160 million-$170 million in full-year 2022. However, we forecast a normalization of earnings in 2023, with adjusted EBITDA of $115 million-$125 million, compared to management's calculation of $105 million normalized EBITDA for the 12 months to March 31, 2022,” the agency added.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.