Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable - S&P Global Ratings’ Credit Research

Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable

Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable - S&P Global Ratings’ Credit Research
Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable
Published Sep 20, 2023
7 pages (2775 words) — Published Sep 20, 2023
Price US$ 225.00  |  Buy this Report Now

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Abstract:

In second-quarter 2023, Bormioli Pharma issued €350 million of senior secured notes due 2028 to refinance maturing debt; increased its super senior revolving credit facility (RCF) to €65 million from €55 million and extended its maturity to 2028 from 2024; we therefore revised our assessment of the company's liquidity to adequate from less than adequate. We expect adjusted EBITDA for the company will improve in 2023 on more-efficient passthrough of cost increases and volume growth, although adjusted free operating cash flow (FOCF) generation will remain negative €3 million to negative €1 million, due to high interest expenses, higher taxes, and working capital needs. We affirmed our 'B-' long-term issuer credit rating on Bormioli Pharma, our 'B-' issue rating on the

  
Brief Excerpt:

...- In second-quarter 2023, Bormioli Pharma issued 350 million of senior secured notes due 2028 to refinance maturing debt; increased its super senior revolving credit facility (RCF) to 65 million from 55 million and extended its maturity to 2028 from 2024; we therefore revised our assessment of the company's liquidity to adequate from less than adequate. - We expect adjusted EBITDA for the company will improve in 2023 on more-efficient passthrough of cost increases and volume growth, although adjusted free operating cash flow (FOCF) generation will remain negative 3 million to negative 1 million, due to high interest expenses, higher taxes, and working capital needs. - We affirmed our 'B-' long-term issuer credit rating on Bormioli Pharma, our 'B-' issue rating on the 350 million senior secured notes due 2028, and the 'B+' issue rating on the company's 65 million RCF. - The stable outlook indicates our expectation of debt to EBITDA of 5.5x-6.0x and funds from operations (FFO) to debt of...

  
Report Type:

Research Update

Issuer
Bormioli Pharma SpA
Sector
Global Issuers
Country
Italy
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable" Sep 20, 2023. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Italy-Based-Packaging-Company-Bormioli-Pharma-Affirmed-At-B-Liquidity-Revised-To-Adequate-Outlook-Remains-Stable-3057619>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Italy-Based Packaging Company Bormioli Pharma Affirmed At 'B-'; Liquidity Revised To Adequate; Outlook Remains Stable Sep 20, 2023. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Italy-Based-Packaging-Company-Bormioli-Pharma-Affirmed-At-B-Liquidity-Revised-To-Adequate-Outlook-Remains-Stable-3057619>
  
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