Moody’s rates Guala Closures notes B1

Moody’s Investors Service said it rated Guala Closures SpA’s planned €475 million of guaranteed senior secured notes due 2028 B1. The agency also affirmed Guala’s B1 corporate family rating and the B1-PD probability of default rating.

“The B1 rating assigned to the new €475 million senior secured notes is the same as the CFR as they represent the majority of the debt in the capital structure,” Moody’s said in a press release.

The proceeds and €18 million of cash will be used to refinance Guala’s €455 million of senior secured floating-rate notes due 2024, to repay the drawings under the super senior revolver and for transaction fees. The rating of the 2024 notes will be withdrawn upon repayment.

“The transaction is necessitated by the change of control clause under the existing bond indenture because funds advised by private equity sponsor Investindustrial have become the largest shareholder of the company with 94.9% of shares since June 7,” Moody’s said.

The outlook remains negative.

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