Moody’s gives Horizon/Verallia CFR B1; rates notes, loans

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Horizon Holdings I SAS, the top entity of the restricted group of glass bottle producer Verallia SA.

Concurrently, the agency assigned a provisional B1 (LGD 3) rating to the group's €560 million equivalent senior secured notes, the €1,002,000,000 senior secured term loan B and the €200 million revolving credit facility, which will be issued by Horizon Holdings III SAS, a majority owned indirect subsidiary of Horizon Holdings I, as well as a provisional B3 (LGD 6) rating to the €300 million senior unsecured notes, issued by Horizon Holdings I.

The outlook on all ratings is stable.

The ratings are contingent upon Apollo's success in closing its proposed acquisition of Verallia, the glass packaging division of Saint-Gobain. Proceeds from the debt facilities, together with the sponsor equity will be used to effect a buyout of the company from Saint-Gobain. The funds will be used to finance the acquisition, repay nearly all debt at Verallia and cover fees and expenses relating to the transaction.

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