Moody's assigns Alpine U.S. Bidco B2

Moody's Investors Service said it assigned first-time ratings to Alpine U.S. Bidco LLC, including a B2 corporate family rating and B2-PD probability of default rating.

The agency also gave B1 ratings to Alpine’s $100 million five-year first-lien revolving credit facility and $325 million seven-year first-lien term loan as well as a Caa1 rating on a $125 million eight-year second-lien term loan.

“Alpine's B2 CFR rating reflects its high financial leverage at closing, modest scale, thin operating profit margins and narrow product categories within the food processing sector. The rating also reflects high execution risk related to the proposed transitioning of the carve-out acquisition into a stand-alone operation,” Moody’s said in a press release.

Term loan proceeds will be used to partially fund the company's $850 million acquisition of the North American bakery operations of Aryzta AG. The $100 million revolving credit facility will be undrawn at closing. The remainder will be funded by Alpine's sponsor, private equity firm Lindsay Goldberg with co-investors, who will contribute about $400 million in cash equity.

The outlook is stable.

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