Moody’s gives B1 rating to Kapla notes

Moody’s Investors Service said it assigned a B1 rating to the new €320 million fixed-rate notes due 2026 and €500 million floating-rate notes due 2026 to be raised by Kapla Holding SAS.

Proceeds will be used to repay the existing €820 million term loan B. The company will also enter into a new revolver that will be super senior to the senior secured notes, in contrast with the existing one which is pari passu with the term loan B. Moody’s said it will withdraw the instrument ratings on the term loan B upon repayment and the existing revolving credit facility upon its cancellation.

Moody’s also affirmed the B1 corporate family rating and B1-PD probability of default rating for Kapla Holding.

“Today’s rating action reflects the leverage neutral loan-to-bond refinancing with no impact on credit metrics. Pro forma for the transaction, Moody’s expects the company to benefit from a lower interest cost that will marginally improve free cash flow generation and an extended maturity profile,” said the agency in a press release.

The outlook remains stable.

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