Moody's: Farley's, loan B1

Moody's Investors Service said it assigned a B1 corporate family rating to Farley's & Sathers Candy Co., Inc. and a B1 (LGD3, 37%) rating to the proposed $60 million revolving credit facility due 2016 and the proposed $185 million term loan B due 2018.

The outlook is stable.

Proceeds from the term loan borrowings and a portion of its cash balances will be used to refinance existing first and second-lien debt.

The ratings reflect the company's leadership position in the U.S. non-chocolate confectionary category benefiting from recognizable brands and long-standing customer relationships across multiple sales channels, Moody's said.

The ratings anticipate conservative liquidity management given the seasonality of the company's cash flows and resulting revolver borrowing requirements and quarterly leverage volatility, the agency said.

The ratings consider the company's relatively small scale, tight operating margins and its exposure to volatile commodity prices, particularly sugar, the agency added.

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