S&P rates Reynolds loans B+

S&P said it assigned a B+ rating and 2 recovery rating to Reynolds Group Holdings Ltd.'s subsidiaries' proposed senior secured credit facilities, which include a $400 million revolving credit facility due 2021, $2.223 billion senior secured term loan due 2023 and €250 million senior secured term loan due 2023.

There are numerous borrowers under the proposed facilities, including Reynolds Consumer Products Holdings LLC.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The proceeds will be used from this term loan to refinance its existing senior secured credit facilities and pay fees and expenses, S&P said.

With annual revenue of about $11 billion, Reynolds is a leading global manufacturer and supplier of consumer food and beverage packaging and storage products, the agency said.

The company has a strong business risk profile, S&P said, but has historically operated with very high levels of leverage.

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