Moody’s might downgrade Refresco

Moody's Investors Service said it placed all ratings of Refresco Group NV under review for downgrade, including the corporate family rating of Ba3, probability of default rating of Ba3-PD and the Ba3 ratings on its senior secured facilities, namely the €200 million senior secured revolving credit facility due 2023, €1.09 billion senior secured term loan due 2024, £200 million senior secured term loan due 2024 and €620 million senior secured term loan due 2024.

On Oct. 25, Refresco and a consortium of private equity firms PAI and bcIMC announced that they agreed on a recommended cash public offer for all shares of Refresco. The consortium plans to launch the offer in December 2017. Closing is contingent on a number of factors including completion of the acquisition of Cott Corp.’s (B1 stable) traditional bottling activities by Refresco, which is expected by year-end subject to anti-trust approval in various jurisdictions.

Moody’s said the action reflects its expectation that, if completed, the transaction will result in a material increase in Refresco's financial leverage.

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