Lenders are looking to offload the debt of Iberian agricultural products maker Rovensa as the Partners Group-backed firm continues to burn through cash. This week, a €40 million piece of its revolving credit facility and around €20 million ($22 million) of term loans were offered at a discount to face value, but failed to trade, according to people familiar with the matter. The debt is subject to a strict list of authorized lenders, in an effort to prevent opportunistic buyers from buying in.
The sale comes at a difficult time for Europe's high yield market, where growing dispersion has made investors more selective. Rovensa faces no imminent debt maturities after striking an amend and extend agreement with its creditors last year. Its over €1 billion of term loans come due in 2030, along with its €185 million revolving credit facility. However, Moody's Ratings, Fitch Ratings and S&P Global Ratings have all placed the company's credit score on review for a potential downgrade, which could push its debt into CCC territory, reserved for the weakest junk credits.
Concerns stem from cash burn and a high ratio of net debt to earnings. Rovensa posted negative free cash flow of €38 million for the fiscal year ended June 30, 2026, the second consecutive year of cash flow deficit. Earnings before interest, taxes, depreciation and amortization fell 15% to €144 million for fiscal 2025-2026. The company has been hurt by industry downturns in key markets Brazil and Mexico, along with weather damage in Europe, and analysts expect these pressures to persist this fiscal year.
Rovensa's management has started addressing the issues, including inventory normalization and targeted key-account plans, but the extent of their impact remains subject to execution risks. Partners Group acquired a controlling stake in Rovensa in 2020. The firm makes crop protection products and biostimulants, employs more than 2,500 people and sells in over 90 countries. Neither Rovensa nor Partners Group immediately commented.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing