Moody's could lift Pinnacle Foods

Moody's Investors Services said it placed the ratings of Pinnacle Foods Finance, LLC under review for upgrade, including the company's B1 corporate family rating, B1-PD probability of default rating, Ba3 senior secured instrument rating and B3 senior unsecured instrument rating.

The speculative grade liquidity rating of SGL-2 was affirmed.

This action follows the company's announcement earlier today that it has entered into an agreement to be acquired by Hillshire Brands Co. in a transaction valued at about $6.6 billion.

Moody's said the proposed $6.6 billion acquisition, which was approved by both boards of Hillshire and Pinnacle, equates to $36.02 per Pinnacle share, an 18% premium from the May 9 closing price. Hillshire expects to fund the proposed acquisition though the issuance of $4.8 billion of new debt and $2.1 billion of common equity.

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