Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path - S&P Global Ratings’ Credit Research

Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path

Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path - S&P Global Ratings’ Credit Research
Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path
Published Mar 31, 2025
2 pages (1055 words) — Published Mar 31, 2025
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Abstract:

This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) March 31, 2025--S&P Global Ratings today said that plans by Ark Holding S.a.r.l. (Autoform) to repay its payment-in-kind (PIK) facilities and revolving credit facilities with €136 million of the cash available on the balance sheet and a €200 million add-on term loan will increase the cash interest cost and weigh on cash flow. But the refinancing puts Autoform on a faster deleveraging path. We forecast the company's S&P Global Ratings-adjusted leverage will decrease to 7.4x in 2025, compared with our previous forecast of 8.9x (5.7x excluding the PIK), thanks to the partially cash-funded debt repayment and our expectation of strong EBITDA growth. At the same time, we forecast

  
Brief Excerpt:

...March 31, 2025 This report does not constitute a rating action. FRANKFURT (S&P Global Ratings) March 31, 2025--S&P Global Ratings today said that plans by Ark Holding S.a.r.l. (Autoform) to repay its payment-in-kind (PIK) facilities and revolving credit facilities with 136 million of the cash available on the balance sheet and a 200 million add-on term loan will increase the cash interest cost and weigh on cash flow. But the refinancing puts Autoform on a faster deleveraging path. We forecast the company's S&P Global Ratings-adjusted leverage will decrease to 7.4x in 2025, compared with our previous forecast of 8.9x (5.7x excluding the PIK), thanks to the partially cash-funded debt repayment and our expectation of strong EBITDA growth. At the same time, we forecast the company's free operating cash flow to debt will remain above 5% (our current downside trigger) in 2025-2026. As a result, our 'B' rating and stable outlook on Autoform, and the 'B' issue level and '3' (60%) recovery ratings...

  
Report Type:

Bulletin

Issuer
Ark Holding S.a.r.l.
Sector
Global Issuers
Country
Switzerland
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path" Mar 31, 2025. Alacra Store. May 15, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Autoform-s-Proposed-Refinancing-Will-Place-The-Company-On-A-Faster-Deleveraging-Path-3345867>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Autoform's Proposed Refinancing Will Place The Company On A Faster Deleveraging Path Mar 31, 2025. New York, NY: Alacra Store. Retrieved May 15, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Autoform-s-Proposed-Refinancing-Will-Place-The-Company-On-A-Faster-Deleveraging-Path-3345867>
  
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