Moody’s gives Neogen notes B2

Moody's Investors Service said it gave a B2 rating to Garden SpinCo Corp.’s (following the combination referred to below, Neogen) planned offering of $350 million of senior unsecured notes.

There is no change to the company's Ba3 corporate family rating, the Ba3-PD probability of default rating, or the Ba2 rating assigned to the company's senior secured credit facilities.

“The B2 rating assigned to the proposed senior unsecured notes reflects the notes' junior ranking below the first-lien credit facilities in Moody's priority of claims waterfall,” the agency said in a press release.

The company will use the proceeds and other sources for cash consideration to 3M Co. Neogen is merging with 3M’s food safety business in a reverse Morris Trust transaction resulting in 3M shareholders owning 50.1% of the combined company, according to Neogen. The deal is expected to close in the third quarter of 2022.

The outlook remains stable.

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