Moody’s rates Norske Skog notes B3, Caa2

Moody's Investors Service said it affirmed Norske Skogindustrier ASA's long-term corporate family rating at Caa2 and upgraded the probability of default rating to Caa2-PD/ LD from Ca-PD.

The outlook is negative.

Concurrently, Moody's assigned a definitive B3 (LGD2) rating to the upsized €290 million senior secured notes due in December 2019 and a definitive Caa2 (LGD3) to the exchange notes due 2021 and 2023.

Moody's confirmed the Caa3 (LGD5) instrument ratings of the residual and now structurally subordinated 2015, 2016, 2017 and 2033 legacy unsecured notes, which were not tendered in the process.

The actions were prompted by Norske Skog's Feb. 23 announcement on that it completed the refinancing of a portion of its bond maturities through issuance of senior secured notes and the exchange of existing bonds into new bonds with longer dated maturities following a consent rate of more than 75% of existing bond holders and about 45% of existing bondholders participating in the exchange offer.

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