Bulletin: PHM Netherlands Midco B.V. Addresses Maturity With Amend-And-Extend Of Revolving Credit Facility

NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today said that release liner manufacturer PHM Netherlands Midco B.V. (dba Loparex; CCC+/Negative--) addressed its near-term maturities with the announcement that it has completed an amend-and-extend of its revolving credit facility. The executed agreement extends the $50 million revolver maturity 18 months to February 2026 from August 2024. Our ratings on PHM are unchanged. We view the extension positively, but believe refinancing risks for PHM's 2026 maturities loom. Weakness in operating performance has raised S&P Global Ratings-adjusted leverage over 10x as of June 30, 2023, which we view as unstainable. Furthermore, if operating performance continues to be weak, we believe it will result in a persistent cash flow deficit, which

...November 3, 2023 NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today said that release liner manufacturer PHM Netherlands Midco B.V. (dba Loparex; ###+/Negative--) addressed its near-term maturities with the announcement that it has completed an amend-and-extend of its revolving credit facility. The executed agreement extends the $50 million revolver maturity 18 months to February 2026 from August 2024. Our ratings on PHM are unchanged. We view the extension positively, but believe refinancing risks for PHM's 2026 maturities loom. Weakness in operating performance has raised S&P Global Ratings-adjusted leverage over 10x as of June 30, 2023, which we view as unstainable. Furthermore, if operating performance continues to be weak, we believe it will result in a persistent cash flow deficit, which could pressure liquidity. For more information, see our research update, "PHM Netherlands Midco B.V. Downgraded To `###+' From `B-` On Weak Performance; Outlook Negative," published...

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