Moody's: Appvion loans Ba3, B3

Moody's Investors Service said it assigned a Ba3 rating to Appvion Inc. proposed $375 million first-lien term loan maturing 2019 and a B3 rating to the company's proposed $200 million second-lien term loan maturing 2020.

The company's speculative-grade liquidity rating was upgraded to SGL-2 from SGL-3 and the outlook was changed to positive from stable.

The B2 corporate family rating and B2-PD probability of default rating were affirmed.

Proceeds from the term loans will be used to repay the company's $503 million existing indebtedness, including prepayment penalties and financing fees.

Moody's said the Ba3 rating on the first-lien term loan are notched two rating levels above the corporate family rating due to their senior ranking to the company's second-lien term loan (rated B3), which provides loss absorption for the first lien debt.

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