Moody's rates Gerresheimer notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the proposed €60 million senior notes issuance by Gerresheimer Holdings GmbH and affirmed the company's existing ratings.

The outlook is stable.

Net proceeds from the notes issue will be applied toward the acquisition of Superfos Pharma Pack, from Superfos Industries AS. The acquisition is expected to close by year-end and provides Gerresheimer the opportunity to diversify into the plastic pharmaceutical packaging market.

While Moody's said the pro-forma adjusted net debt/adjusted EBITDAR ratio of 6x for the transaction as high, the rating agency acknowledged that the acquisition is consistent with the company's stated strategy and remains within the scope of the corporate family rating assigned in February 2005.

The ratings continue to be supported by Gerresheimer's exposure to the reasonably stable pharmaceutical sector, focus on high-growth niche market areas, well-established customer relationships, and high barriers to entry, the agency said.

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