Bulletin: Generics Pharma Company Zentiva's Proposed Changes To Term Loan Do Not Affect Recovery Rating

FRANKFURT (S&P Global Ratings) July 26, 2023--S&P Global Ratings today said that Zentiva holding company AI Sirona (Luxembourg) Acquisition S.a.r.l.'s proposed changes to its capital structure will not affect our recovery rating. The company (B/Stable/--) plans to eliminate its second-lien debt, upsize the first lien of the euro term loan B (TLB) to €1,825 million, and cut off the British pound TLB. Our operating assumptions for the group are unchanged. We understand that Zentiva's sales volumes are rising, and profitability is improving as its turnaround plans gain momentum. We continue to expect S&P Global Ratings-adjusted leverage to remain at 6.9x in 2023 and 6.1x in 2024, with adjusted free operating cash flow of about €75 million annually in 2023 and

...July 26, 2023 FRANKFURT (S&P Global Ratings) July 26, 2023--S&P Global Ratings today said that Zentiva holding company AI Sirona (Luxembourg) Acquisition S.a.r.l.'s proposed changes to its capital structure will not affect our recovery rating. The company (B/Stable/--) plans to eliminate its second-lien debt, upsize the first lien of the euro term loan B (TLB) to 1,825 million, and cut off the British pound TLB. Our operating assumptions for the group are unchanged. We understand that Zentiva's sales volumes are rising, and profitability is improving as its turnaround plans gain momentum. We continue to expect S&P Global Ratings-adjusted leverage to remain at 6.9x in 2023 and 6.1x in 2024, with adjusted free operating cash flow of about 75 million annually in 2023 and 2024, despite the full impact of the new refinancing. This is because of increasing profitability and efficient working capital management. Our recovery rating on the first-lien facility issued by Zentiva is '3', reflecting...

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