S&P gives B to Kevlar, loan, notes

S&P said it assigned B ratings to Kevlar SpA, its planned $75 million senior secured term loan A and $790 million senior secured bond due 2029. The recovery rating on the debt is 3. The issuer also plans to obtain a €175 million super senior revolver. The outlook is stable.

Kevlar was created through the acquisition of Kedrion SpA and Bio Products Laboratory. The agency affirmed Kedrion’s B rating.

Kevlar plans to use the proceeds to refinance debt.

“The stable outlooks indicate our expectation that Kevlar's EBITDA will continue to grow, supported by the successful integration of BPL, materialization of synergies, the positive dynamics of the plasma derivatives market, and the group's increasing market share in the U.S., although the integration and the required investment will result in free operating cash flow (FOCF) being largely negative in 2023 and turning positive only in 2025,” S&P said in a press release.

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