Moody's gives Valcour B3, loans B2, Caa2

Moody's Investors Service said it gave a B3 corporate family rating and B3-PD probability of default rating to Valcour Packaging LLC (Mold-Rite). Moody's also assigned a B2 rating to the company's planned $400 million first-lien senior secured term loan and a Caa2 rating to the proposed $160 million second-lien senior secured term loan. The outlook is stable.

"Mold-Rite's product innovation capabilities and specialized product mix, serving stable end markets, are expected to enable the company to maintain good liquidity and EBITDA margins above 25%, which is reflected in our stable outlook," said Scott Manduca, a Moody's vice president, in a press release.

The B2 rating on the first-lien loan is one notch above the CFR reflecting its superior position in the capital structure though it is subordinate to the company’s new unrated $35 million asset-based lending revolver. The Caa2 rating on the second-lien loan reflects its effective subordination to both the first-lien term loan and the revolver, the agency explained.

Loan proceeds, along with common and preferred equity will be used to finance Clearlake Capital Group’s acquisition of Valcour from Irving Place Capital and a pay fees and expenses associated with the transaction.

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