Bulletin: Czech Pharma Company Zentiva's €100 Million Debt Add-On Reduces Rating Headroom

MADRID (S&P Global Ratings) November 20, 2020--S&P Global Ratings today said that Zentiva's (AI Sirona (Luxembourg) Acquisition S.a.r.l.; B/Negative/--) proposed €100 million add-on to its €1.34 billion term loan B facility will lead to higher leverage, reducing headroom under the rating. However, adjusted debt to EBITDA will remain commensurate with a 'B' rating. We understand the new debt will be used to fund two product acquisitions, and expect these transactions will close by the end-2020. Despite unstable market conditions, we understand that Zentiva's sales volumes are rising and that profitability is improving as the group's turnaround plans continue to gain momentum. The group is experiencing positive operating trends across its business lines and we note that the integration of Alvogen

...November 20, 2020 MADRID (S&P Global Ratings) November 20, 2020--S&P Global Ratings today said that Zentiva's (AI Sirona (Luxembourg) Acquisition S.a.r.l.; B/Negative/--) proposed 100 million add-on to its 1.34 billion term loan B facility will lead to higher leverage, reducing headroom under the rating. However, adjusted debt to EBITDA will remain commensurate with a 'B' rating. We understand the new debt will be used to fund two product acquisitions, and expect these transactions will close by the end-2020. Despite unstable market conditions, we understand that Zentiva's sales volumes are rising and that profitability is improving as the group's turnaround plans continue to gain momentum. The group is experiencing positive operating trends across its business lines and we note that the integration of Alvogen and the Ankleshwar manufacturing plant are on track and already delivering synergistic gains. Nevertheless, we assume increasing uncertainty in the upcoming quarters, especially regarding...

Bulletin