Moody's assigns TreeHouse notes B2

Moody's Investors Service said it assigned a B2 rating to $400 million of senior unsecured notes due 2028 being offered today by TreeHouse Foods, Inc. All other of the company's ratings, including its Ba2 senior secured debt, B2 senior unsecured debt, and SGL-2 Speculative Grade Liquidity rating are unaffected.

“Moody's views the transaction as credit positive because it will extend TreeHouse's debt maturity profile without materially affecting cash interest cost. The company's ratings are not affected because financial leverage and free cash flow are largely unchanged,” Moody’s said in a press release.

Proceeds will be used to fund the redemption of the company's $376 million of 4 7/8% senior notes due 2022 that are redeemable at 100% of the principal amount after March 15. The remaining proceeds will supplement cash balances and be used for general purposes. The proposed offering is not contingent upon the repurchase of the outstanding $376 million senior notes due 2022.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.