S&P rates Schur Flexibles, loan B

S&P said it gave B ratings to Schur Flexibles Holding GesmbH and its €475 million senior secured term loan B maturing in 2028. The recovery rating is 3, indicating an expectation of meaningful recovery (rounded estimate: 50%) in default.

B&C Group acquired 80% of Schur from Lindsay Goldberg in May 2021. As a part of the deal, Schur refinanced its debt with a €475 million senior secured term loan B maturing in 2028, with a €100 million senior secured revolving credit facility.

“We expect Schur's adjusted EBITDA margins to remain stable at around 15%-16% in the near term, as the small size of the business remains a rating constraint. Schur's adjusted EBITDA margin improved to around 16% in 2020 thanks to polymer procurement savings, geographical footprint rationalizations, favorable changes in the product mix, and additional sales volumes. The rating remains constrained by Schur's limited scale of operations, however. The flexible packaging market is highly fragmented and competitive,” the agency said in a press release.

The outlook is stable.

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