S&P: Grupo Antolin view to negative

Standard & Poor’s said it revised the outlook on Grupo Antolin Irausa SA to negative from stable.

The agency also said it affirmed the company’s BB- long-term corporate credit rating, along with the BB- rating on the €400 million senior secured notes issued by Grupo Antolin Dutch BV, as well as the €200 million revolving credit facility and the €200 million term loan A issued by Grupo Antolin Irausa SA.

The recovery rating on these debt instruments is 3, indicating 50% to 70% expected default recovery.

The negative outlook reflects a view that Grupo Antolin’s acquisition of the interiors business of Magna International will weaken the group’s financial profile and entail execution risks, even though it also will moderately strengthen its business profile, S&P said.

Grupo Antolin recently said it signed a purchase agreement to acquire the interiors business of Magna International for $525 million.

To finance the transaction, Grupo Antolin negotiated a six-year $525 million bridge loan that it intends to refinance by issuing a bond in the coming months, the agency said.

Grupo Antolin already negotiated a €200 million increase of its banking facilities. The transaction should close around the end of July, S&P said.

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