Moody's: DS Waters loan B1

Moody's Investors Service said it assigned a B1 (LGD 4, 55%) rating to the proposed $465 million first-lien secured term loan facilities due 2017, which will be used to partially fund the recapitalization of DS Waters of America, Inc.'s balance sheet.

A B1 corporate family rating and B1 probability of default rating also were assigned to the post-recapitalization DS Waters entity, Moody's said.

The outlook is stable.

These ratings are predicated on the completion of the recapitalization and subject to review of final documentation, the agency said.

The proceeds and about $100 million of cash will be used to repay DS Waters' existing $180 million term loan B due October 2012 and $300 million holding company term loan due April 2012.

The recapitalization would include a proposed $75 million first-lien delayed draw term loan due 2017, the proceeds of which are expected to be used to finance the potential acquisition of a provider a brewed beverages and related products company.

The proposed recapitalization is expected to substantially improve DS Waters' capital structure, Moody's said.

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