Moody’s revises Give & Go to negative

Moody's Investors Service said it affirmed Give and Go Prepared Foods Corp.'s (Give & Go) B2 corporate family rating, B2-PD probability of default rating and B1 ratings on its first-lien credit facilities following the company's announced $97 million add-on to its first term loan and unrated second-lien term loan, and $45 million upsize to its revolver.

The outlook was changed to negative from stable.

Proceeds, together with balance sheet cash will be used to pay a $113 million dividend to Give & Go's shareholders.

"The ratings outlook was revised to negative to reflect Give & Go's increased leverage (pro forma adjusted Debt/EBITDA to 6.6x from 5.7x) to fund a dividend to its owners while the company is looking to grow its business" Moody's assistant vice president Peter Adu said in a news release.

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