...October 16, 2024 Solina maintains credit metrics in line with our 'B' rating following the proposed 135 million add-on to fund two bolt-on acquisitions and repay the 59 million drawdown on the revolving credit facility (RCF). We expect that the group's S&P Global Ratings-adjusted debt to EBITDA will remain at about 7x by end-2024 (versus 7.3x in 2023), higher than our previous estimates of about 6x by end-2024. The transaction has no impact on the '3' recovery rating on Solina's 920 million senior secured term loan due 2028 (including the proposed 135 million tap). The recovery rating continues to indicate our expectation of average recovery (50%-70%; rounded estimate 50%) in the event of a payment default. Solina plans to issue the new debt via its fully owned financing vehicle Solina Corporate. The RCF drawing was used to finance the acquisition of Rich Sauces, a U.K.-based sauce manufacturer, in July 2024. The acquisitions under consideration include a dry solutions manufacturer operating...
