Fitch rates Kellogg Canada notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Kellogg Canada Inc.'s C$300 million 2.05% senior unsecured notes due May 23, 2017.

Kellogg Canada is an indirect wholly owned subsidiary of Kellogg Co. that produces and markets Kellogg products in Canada.

Kellogg Canada intends to use the net proceeds plus cash on hand to refinance C$300 million 2.1% notes due May 22, 2014.

The new privately placed notes will be fully and unconditionally guaranteed by Kellogg and will rank pari passu with Kellogg Canada's other unsecured and unsubordinated debt.

The notes contain a Change of Control Repurchase Event provision. Upon the occurrence of both a change of control and rating downgrades below investment grade at Kellogg, unless Kellogg Canada exercises its right to redeem the notes, the issuer will be required to make an offer to purchase the notes at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. The notes will be issued under a new supplement to Kellogg Canada's base indenture dated May 22, 2012, which contains limitations on liens and sale-leasebacks but does not contain financial covenants.

© 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.