Moody’s rates AdvancePierre loans B2, Caa1

Moody's Investors Service said it affirmed AdvancePierre Foods, Inc.’s corporate family rating at B2 and probability of default rating at B2-PD, and assigned the newly proposed first- and second-lien term loans a B2 and Caa1 rating, respectively.

The outlook is maintained at stable.

Proceeds will be used to refinance the company's existing first- and second-lien credit facilities, add roughly $13 million of cash to the balance sheet, and fund debt breakage costs and fees and expenses associated with the transaction.

"The refinancing of AdvancePierre's debt capital structure removes the risk associated with near-term debt maturities, which ultimately improves the company's credit profile, specifically with respect to liquidity, and as a result makes the company a more attractive IPO candidate," Moody's assistant vice president and analyst Brian Silver said in a news release.

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