Bulletin: Rossini's Proposed Refinancing May Lighten Interest Burden While Improving Cash Flow

MILAN (S&P Global Ratings) Oct. 15, 2019--S&P Global Ratings today said that Luxembourg-based pharma company Rossini Acquisition Sarl's intention to refinance its existing €650 million senior secured floating notes might reduce the group's interest burden and improve free operating cash flow (FOCF). Rossini (B/Stable/--) will refinance its existing senior secured floating notes bearing interest at Euribor plus 6.25% with new €650 million senior secured floating notes carrying a lower interest rate. We understand that the current notes become callable on Oct. 30, 2019. Similar to the existing instrument, the proposed notes will be issued by Rossini Sarl, mature in October 2025, and have the same security package and financial covenants. We rate the proposed floating notes 'B', and the recovery

...October 15, 2019 MILAN (S&P Global Ratings) Oct. 15, 2019--S&P Global Ratings today said that Luxembourg-based pharma company Rossini Acquisition Sarl's intention to refinance its existing 650 million senior secured floating notes might reduce the group's interest burden and improve free operating cash flow (FOCF). Rossini (B/Stable/--) will refinance its existing senior secured floating notes bearing interest at Euribor plus 6.25% with new 650 million senior secured floating notes carrying a lower interest rate. We understand that the current notes become callable on Oct. 30, 2019. Similar to the existing instrument, the proposed notes will be issued by Rossini Sarl, mature in October 2025, and have the same security package and financial covenants. We rate the proposed floating notes 'B', and the recovery rating is '4'. Our indicative recovery prospects are in the 30%-50% range (rounded estimate: 30%). We assume the transaction will be leverage neutral, and forecast lower financial costs...

Bulletin