MADRID (S&P Global Ratings) Sept. 15, 2021--S&P Global Ratings said today that we consider STADA's (Nidda BondCo GmbH; B/Stable/--) proposed €350 million add-on to its existing term loan facilities largely credit neutral. We understand that the new debt will be used to repay €267 million of operating company debt and for transaction costs, with the remainder staying on the balance sheet for liquidity purposes. We expect the transaction to close by year-end 2021. We consider the transaction to have no immediate effect on the current rating. The repayment will improve STADA's debt-maturity and liquidity profiles but we still consider rating headroom limited given the group's high leverage and aggressive financial policy, as well as COVID-19-related impacts on its end markets.
