...DUBLIN (S&P Global Ratings) Feb. 15, 2021--S&P Global Ratings said today that tapping Diaverum Holding Sarl's term loan B will delay the deleveraging of the business until 2022. Dialysis provider Diaverum (B-/Stable/--) plans to use the 130 million cash proceeds of the new debt to repay drawings under its original 175 million revolving credit facility (RCF, due 2024), freeing up capacity to make new acquisitions. Following a relatively quiet 2020 amid the COVID-19 pandemic outbreak, the company intends to resume more intense acquisition spending in 2021 to support future growth, with planned 107 million cash outflow, which will largely be funded by fresh drawings under the replenished RCF. As a result, we forecast cash-paying adjusted debt to EBITDA will remain unchanged (from our estimated 2020 level) at about 8.0x in 2021. We anticipate EBITDA margins to be broadly flat at 19.4%-19.6% because of ongoing COVID-19 costs, combined with the cost of integrating newly acquired assets. We consider...
