Moody's raises Berlin first-lien loans

Moody's Investors Service said it upgraded the ratings on Berlin Packaging LLC's senior secured first-lien credit facilities to B2 from B3. Moody's also affirmed Berlin's B3 corporate family rating and B3-PD probability of default rating.

The upgrade results from a junior debt increase in the company's capital structure, which will absorb a higher level of losses in a recovery scenario, Moody’s said.

Berlin plans to recapitalize its balance sheet with help from Oak Hill Capital Partners and Canada Pension Plan Investment Board. To partially fund the recapitalization, Berlin will issue $580 million in unrated senior secured second-lien debt maturing in December 2029.

Concurrent with the recapitalization, Berlin also plans to raise a $160 million incremental senior secured first-lien term loan maturing in 2028. The proceeds from the incremental facility will be used to fund pending acquisitions.

The outlook is stable.

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