Primo Water Corp.

On March 2, 2020, Cott Corp. completed the US$775 million acquisition of U.S.-based Primo Water Corp. and subsequently renamed itself as Primo Water Corp. In conjunction with the acquisition, Cott also completed the sale of its S&D coffee segment to Westrock Coffee. We believe that these transactions and the subsequent rebranding transition Cott into a pure-play water solutions provider in North America and Europe. Hereafter, we will be referring to Cott as Primo Water Corp. The stable outlook reflects that even though Primo's debt to EBITDA will temporarily increase to the 5.5x-6x area in fiscal 2020, we expect operations will normalize post pandemic with leverage returning to the 5x area in 2021. The outlook incorporates our view that given Primo's

...On March 2, 2020, Cott Corp. completed the US$775 million acquisition of U.S.-based Primo Water Corp. and subsequently renamed itself as Primo Water Corp. In conjunction with the acquisition, Cott also completed the sale of its S&D coffee segment to Westrock Coffee. We believe that these transactions and the subsequent rebranding transition Cott into a pure-play water solutions provider in North America and Europe. Hereafter, we will be referring to Cott as Primo Water Corp. Widespread shutdown globally including offices and public spaces to contain COVID-19 could pressure Primo's revenues and EBITDA in fiscal 2020. Primo generates about 40% of its total revenues from small and midsize commercial enterprises. Stay-at-home orders and closures of non-essential businesses since the end of March 2020 in response to the COVID-19 pandemic will lead to materially lower demand from Primo's commercial customers (with the greatest impact in the second fiscal quarter). We believe risks remain that...

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