Fitch assigns Spinnaker B, loan B+

Fitch Ratings said it assigned Spinnaker Topco Ltd. (Norgine) a first-time long-term issuer default rating of B with a stable outlook. The agency also assigned Spinnaker Debtco Ltd.'s planned €675 million term loan expected secured B+/RR3 ratings.

“Norgine's ratings reflect its product portfolio, which benefits from established positions in selected markets, strong profitability, and growth prospects from over-the-counter (OTC) commercialization opportunities. The ratings remain constrained by Norgine's size, product concentration, combined with depressed initial free cash flow (FCF) due to temporarily higher investment in the business, and high starting leverage in 2024,” Fitch said in a press release.

Norgine’s opening leverage EBITDA gross leverage is at around 6x, which indicates limited rating headroom, the agency said.

“However, the stable outlook assumes gradual leverage reduction towards 4x over the rating horizon to 2027, leading to a financial structure more comfortably aligned with the B rating, assuming financial discipline and conservative capital allocations,” Fitch added.

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