Moody’s lifts Glatfelter

Moody's Investors Service upgraded Glatfelter Corp.'s corporate family rating to B3 from Caa1, probability of default rating to B3-PD from Caa1-PD, senior unsecured notes rating to Caa1 from Caa2, senior secured first-lien revolving credit facility to Ba3 from B1, and speculative grade liquidity rating to SGL-3 from SGL-4.

Moody's also changed the outlook to stable from negative.

“Today's rating actions reflect Glatfelter's successful refinancing of a significant near-term maturity, improving its liquidity and our expectation that financial leverage will improve towards 6.5x over the next 12-18 months,” Aziz Al Sammarai, a Moody's analyst, said in a news release.

On March 30, Glatfelter completed the refinancing of its €220 million term loan that would have matured in February 2024 with a new €250 million senior secured term loan facility maturing in March 2029 from affiliates of Angelo, Gordon & Co., LP.

Moody’s said the transaction improves the company's liquidity by eliminating near-term maturities with the next significant maturity in September 2026 when its revolver expires.

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