Moody's gives Diversey notes Caa1

Moody's Investors Service said it gave a Caa1 rating to Diamond (BC) BV’s (Diversey) planned $500 million of eight-year senior unsecured year notes.

Proceeds will be used to repay the senior unsecured notes due 2025.

"The transaction is positive to the credit profile in that it reduces pre-tax debt service cost and the company's overall cost of debt capital," said Joseph Princiotta, a Moody's senior vice president and lead analyst for Diversey, in a press release.

"The transaction, combined with the recent new term loan refinancing, is virtually net leverage neutral and improves the company's debt profile with its next debt maturity not until 2028. The Caa1 rating on the new senior unsecured notes, two notches below the B2 CFR, reflects subordination to the substantial amount of secured TL debt in the capital structure," Princiotta added.

The outlook is positive.

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