Moody’s rates Candy Intermediate loan B2

Moody's Investors Service said it affirmed Candy Intermediate Holdings, Inc.’s corporate family rating at B2, along with its probability of default rating at B2-PD.

The company is a wholly owned subsidiary of Ferrara Candy Co. Holdings, Inc., Moody’s said.

The agency also said it assigned a B2 rating to the company's newly proposed seven-year $500 million first-lien term loan.

The proceeds from the newly proposed first-lien term loan and $150 million second-lien term loan due in 7.5 years are expected to be used to repay the company's currently outstanding borrowings on its existing term loan B and pay a $189 million dividend to the company's financial sponsor, Moody’s said.

The company said it also plans to extend the maturity of its existing $150 million asset-backed loan by putting in place a new $150 million ABL due in five years from the close of the transaction, the agency said.

The outlook is stable.

The ratings reflect an expectation that the company will deleverage from relatively high leverage levels over the next 12- to 18-months, Moody’s said.

The ratings also consider the company’s product mix-shift toward higher margin-branded offerings, solid organic growth in its branded platform, along with cost saving and restructuring initiatives, the agency said.

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