Moody’s gives B1 to Parex notes

Moody's Investors Service said it assigned a provisional B1 (LGD5) rating to the proposed €150 million senior secured floating-rate notes due 2023 to be issued by Dry Mix Solutions Investissements SAS, the intermediate holding company of Parex Group.

Funds from the issuance together with available cash on hand will be used to refinance in part a shareholder loan granted by the group's owner CVC and to cover certain transaction fees and expenses.

Concurrently, Moody's affirmed the B1 corporate family rating, Ba3-PD probability of default rating as well as the B1 (LGD5) rating on the group's existing €550 million senior secured floating-rate notes due 2021.

The outlook was changed to negative from stable.

The action follows Parex's proposed issue of €150 million senior secured floating-rate notes, which the group will use together with €28 million of cash on balance sheet to repay €175 million worth of shareholder notes and loans granted by its private equity owner CVC Capital Partners Ltd. when acquiring Parex in June 2014 (about €225 million of shareholder loans and notes including accrued interest were outstanding as of Dec. 31).

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