Bulletin: INNIO Group Holding GmbH's Term Loan B Repricing Reduces Interest Costs, Credit Quality Is Stable

This report does not constitute a rating action. PARIS (S&P Global Ratings) Jan. 24, 2024--S&P Global Ratings today said that the repricing of the €1.1 billion term loan B (TLB) due in July 2028 and the $595 million TLB issued by INNIO Group Holding GmbH (INNIO) will slightly improve the company?s cash interest costs. We expect the company?s funds from operations cash interest coverage to be more than 3.0x in 2025 and 2026. We view this repricing transaction as leverage neutral, and our ratings on INNIO (B+/Stable/--) and its debt are therefore unchanged. The recovery rating of ?3? on the company?s senior secured term loan reflects our expectation of meaningful recovery (50%-70%; rounded estimate: 60%) in a default scenario. Our

...January 24, 2025 This report does not constitute a rating action. PARIS (S&P Global Ratings) Jan. 24, 2024--S&P Global Ratings today said that the repricing of the 1.1 billion term loan B (TLB) due in July 2028 and the $595 million TLB issued by INNIO Group Holding GmbH (INNIO) will slightly improve the company's cash interest costs. We expect the company's funds from operations cash interest coverage to be more than 3.0x in 2025 and 2026. We view this repricing transaction as leverage neutral, and our ratings on INNIO (B+/Stable/--) and its debt are therefore unchanged. The recovery rating of `3' on the company's senior secured term loan reflects our expectation of meaningful recovery (50%-70%; rounded estimate: 60%) in a default scenario. Our forecast from November 2024 remains unchanged (see "Tear Sheet: INNIO Group Holding GmbH," published on Nov. 14, 2024, on RatingsDirect). We forecast S&P Global Ratings-adjusted EBITDA margins of 21%-22% and we expect debt to EBITDA to trend down...

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