Moody’s might lift Refresco Gerber

Moody's Investors Service said it placed all ratings of Refresco Gerber BV under review for upgrade, including the B2 corporate family rating, B2-PD probability of default rating and the B3 rating on the senior secured notes.

The action follows the company’s announcement of an IPO.

On March 17, Refresco announced the expected amount of primary proceeds to be raised from the proposed IPO of the company's shares on the Euronext Amsterdam. The total size of the IPO is expected to result in a free float of up to 47.1% of the issued share capital excluding exercise of the over-allotment option (up to 54.2% assuming full exercise of the option) and is expected to consist of a €100 million primary offering and a secondary sell down by the current shareholders of existing shares.

Net proceeds will be used to repay part of the company's outstanding floating rate notes.

The agency expects the company's Moody's-adjusted leverage ratio to be about 3.4 times as at year-end 2014 pro forma for the IPO and the refinancing compared to 3.8 times prior to this transaction.

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