Moody's: Hoffmaster loan B1

Moody's Investors Service said it affirmed Hoffmaster Group, Inc.'s B2 corporate family rating, B1 (LGD3, 38%) $30 million senior secured revolving credit facility due June 2015 and $157 million senior secured term loan due June 2016 and Caa1 (LGD5, 88%) $65 million second-lien term loan due June 2017.

Moody's assigned a B1 (LGD3, 38%) rating to the company's $23 million senior secured first-lien term loan add-on due 2016.

The outlook remains stable.

The affirmation of the company's B2 rating reflects its still modest leverage profile, improved channel diversification and opportunity for meaningful cost synergies following its partially debt-financed acquisition of Innoware Paper, Inc., the agency said.

Hoffmaster's acquisition is reasonably priced, fits well with its existing product portfolio and improves its distribution capabilities within major retail channels, specifically at value-priced warehouse club customers, the agency added.

The debt-to-EBITDA ratio was 4.7 times in 2010.

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