Moody's could up Appleton Papers

Moody's Investors Service said it placed Appleton Papers Inc.'s B2 corporate family rating, B2 probability of default rating, B1 senior secured, B3 senior second-lien and Caa1 senior subordinate ratings under review for upgrade following the announcement that the company signed a definitive agreement to engage in a business combination with Hicks Acquisition Co. II Inc.

The total transaction value is $675 million and the combined company will be listed on the Nasdaq exchange.

Closing of the transaction is expected in July and is subject to the approval of Hick's shareholders and other customary closing conditions.

Moody's said the review will focus on the positive impact of the elimination of payments under the privately held employee stock ownership plan structure and the improved liquidity and potential debt repayment from the proceeds of the transaction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.