Moody's assigns JDE Peet bonds Baa3

Moody's Investors Service said it assigned a Baa3 long-term backed senior unsecured rating to JDE Peet's NV’s proposed bonds issuance.

The company is issuing three senior unsecured notes for a total of €2 billion with maturities of four years plus seven months, seven years plus seven months and 12 years.

The Baa3 long term issuer rating of JDE Peet's and the Baa3 rating on the senior unsecured €3.7 billion term loan A borrowed by Jacobs Douwe Egberts International BV and now guaranteed by JDE Peet's, remain unaffected by today's action.

Proceeds will be used for general corporate purposes including the repayment of debt at JDE Peet's and JDE International.

“Moody's views the bonds issuance, if successful, as credit positive because it will lengthen overall debt maturities and will further simplify the company's capital structure, reducing the amount of debt at subsidiary level and reducing the cost of debt,” the agency said in a press release.

The outlook is stable.

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