Synthomer - comment

The refinance of the RCF and UKEF facilities will layer the SUNs. The US subsidiaries (25% EBITDA) have been made unrestricted and then transferred to a new subsidiary, which will provide guarantees to the banks. The impact of the LME will reduce the recovery of the SUNs. We are updating our model to determine how much (US businesses are likely to achieve higher multiples).

H2 operational results were weaker than our modelling; H1 has started strongly, and the supply chain disruption due to the Gulf conflict is benefiting Synthomer vs its Asian based peers. There is likely to be upside to the 2026 guidance, but the main news for creditors is the extension of the bank facilities to 2029 in return for security over the US subsidiaries, which layers the SUNs.

https://www.synthomer.com/investor-relations/results-reports-and-presentations/