Moody’s rates Hearthside loan B1

Moody's Investors Service said it assigned a B1 rating to Hearthside Group Holdings, LLC's repriced first-lien term loan, which was also upsized to $601 million.

Proceeds will be used to refinance the existing B1-rated $551 million term loan and repay about $50 million outstanding on the revolving credit facility.

Hearthside expects that the lower interest rate on the term loan will lower total interest costs. It is effecting this refinancing through an amendment to its existing credit facility.

The revisions are credit positive but the ratings and stable outlook remain unchanged, the agency added.

Hearthside's $100 million first-lien revolving credit facility and $601 million first-lien term loan are rated B1 (LGD 3), one notch above the B2 corporate family rating. This reflects their priority position in the capital structure to a meaningful amount of unsecured debt.

The revolver and term loan are guaranteed by Hearthside's parent (H-Food Holdings, LLC) and Hearthside's wholly owned domestic restricted subsidiaries, Moody’s explained.

Both of these facilities are secured on a first-lien basis by substantially all the assets of the borrower and guarantors.

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