Moody’s rates Houston Foods facilities B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Houston Foods, Inc., borrower and subsidiary of Dhanani Group Inc.

The agency also assigned B2 ratings to Dhanani's proposed $40 million senior secured revolver and $420 million senior secured term loan.

The outlook is stable.

Proceeds from the proposed $420 million senior secured term loan, along with $75 million of proceeds to be received from the sale and lease-back of 114 Popeyes properties, will be used to refinance and consolidate the debt at the company's Burger King, Popeyes and La Madeleine operations, repay certain existing real estate debt, finance a portion of the acquisition of 14 Popeyes units and 7 La Madeleine units, and pay about $9 million in related fees and expenses.

"Dhanani's B3 CFR considers the company's high leverage as a result of the proposed refinancing transaction, sizeable level of capex requirements, and acquisitive nature of the company," Moody's assistant vice president, analyst Adam McLaren said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.