Moody's puts Hearthside on downgrade review

Moody's Investors Service said it placed Matterhorn Merger Sub, LLC on review for downgrade.

The company is now known as H-Food Holdings (Hearthside).

The ratings on review include its corporate family rating of B3 and probability of default rating of B3-PD, along with the B2 (LGD 3) rating on its $150 million first-lien senior secured revolving credit facility due 2023, B2 (LGD 3) rating in its $1.15 million senior secured first-lien term loan due in 2025 and Caa2 (LGD 5) on its $350 million senior unsecured global notes due in 2026.

The review follows news that the company signed a definitive agreement to acquire Greencore USA for about $1.1 billion, Moody's said.

Funding details were not disclosed, but the agency said it expects the acquisition to be funded with a combination of debt and equity.

The review will focus on Hearthside's operating strategy and its capital structure following the acquisition, Moody's said.

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