Moody’s assigns Sovos loan B3

Moody’s Investors Service said it gave a B3 rating to Sovos Brands Intermediate, Inc.’s planned $380 million term loan.

Proceeds and cash on hand will be used to refinance Sovos’ $280 million secured term due 2025 and to partially fund the acquisition of premium pancake mix brand Birch Benders, along with associated transaction fees and expenses. Moody’s took no action on the B3 rating on the term loan and will withdrawal the rating once the facility is repaid.

Moody’s also affirmed the company’s B3 corporate family rating and changed the outlook to positive from stable. The revised outlook reflects Sovos’ Rao franchise’s strong performance, the company’s successful efficiency initiatives and lower integration costs that increased earnings and helped lower leverage, Moody’s said.

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