Moody's: Reynolds loans Ba3, notes Ba3, Caa1

Moody's Investors Service said it assigned provisional Ba3 ratings to the $2.33 billion senior secured term loan E due 2018 and €250 million senior secured euro term loan due 2018 proposed by Reynolds Group Holdings Ltd. and certain of its subsidiaries.

The agency also said it assigned definitive ratings of Ba3 and Caa1 to the $1 billion senior secured notes due 2021 and $1 billion senior unsecured notes due 2021, respectively, issued following a review of final documents.

The ratings on its existing debt issues are not expected to change, but LGD rates of existing debt issues might change slightly once the senior secured term loans have been placed and definitive ratings have been assigned, Moody's said.

The purpose of the proposed senior secured term loans is to further extend the group's maturity profile by refinancing about $2.65 billion of existing senior secured term loans due in 2015 to 2016 and to reduce the group's interest costs, the agency said.

The proposed senior secured term loans will be issued by subsidiaries of Reynolds and benefit from senior guarantees of Reynolds and substantially all of its material operating subsidiaries, Moody's said.

The proposed senior secured term loans benefit from security interests, the agency said.

The negative outlook considers the company's stretched financial metrics based on a pro forma assessment of the Pactiv acquisition, which closed in November, and related financing, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.