Moody’s gives Weener Plastics, facilities B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Weener Plastics Holding BV.

The agency also assigned B1 instrument ratings to the €335 million senior secured term loan B due 2025 and €75 million senior secured revolving credit facility due 2024 of Weener Plastics Group BV.

The outlook is stable.

The proceeds will be used to refinance existing debt from the company's acquisition by funds advised by 3i Group plc and co-investors in 2015, and to fund the acquisition of Productores de Envases Farmaceuticos.

Moody’s said the ratings reflect meaningful leverage with Moody's-adjusted debt/EBITDA of 4.9x at the end of 2017, pro-forma for acquisitions and relatively small scale in terms of revenues, which positions the ratings weakly at B1.

However, the agency said it expects gradual EBITDA growth and deleveraging in 2018 and 2019 so that leverage reduces towards 4.5x.

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