Moody's rates Windsor loans B1

Moody's Investors Service said it assigned a B1 rating B1 (LGD3, 37%) to Windsor Quality Food Co., LLC's proposed $450 million senior secured credit facilities, and affirmed its B1 corporate family rating and B2 probability-of-default rating.

The facilities consist of $60 million senior secured revolving credit facility due 2015, $140 million senior secured term loan A due 2015 and $250 million senior secured term loan B due 2016.

The outlook is positive, reflecting expectation that Windsor will be conservatively capitalized for the rating following its acquisition of Discovery Foods Holding Corp. and that it will benefit from increased scale and improved product and channel diversification, the agency said.

Proceeds from the proposed facilities are expected to fund Windsor's acquisition of Discovery and refinance existing debt.

The B1 rating reflects Windsor's modest post-acquisition leverage, adequate liquidity profile and the heightened integration risk following the completion of Windsor's acquisition of Discovery, the agency said.

The rating reflects the view that free cash flow could be pressured in a rising commodity environment given its high term loan amortization requirements, but this concern is largely tempered by expectation that Windsor will maintain ample access to its revolving credit facility, the agency added.

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