S&P affirms Reynolds, gives notes BB, loans BB, BB-

Standard & Poor's said it affirmed its B+ corporate credit rating on Reynolds Group Holdings Ltd. and removed it from Creditwatch, where it had been placed on Aug. 17 with negative implications, when Reynolds announced its plans to buy Pactiv in a highly leveraged transaction.

The outlook is negative.

"The corporate credit rating of B+ on Reynolds Group Holdings Ltd. will reflect a strong business risk profile as one of the world's premier packaging companies and a highly leveraged financial risk profile," said credit analyst Cynthia Werneth.

Based on preliminary terms and conditions and its updated recovery analysis, the agency said it assigned a senior secured debt rating of BB, two notches above the corporate credit rating, and a recovery rating of 1 to Reynolds Group Holdings' proposed $500 million delayed draw term loan A maturing in 2015 and $1 billion delayed draw term loan B maturing in 2016, as well as the $2 billion of proposed senior secured notes due 2018.

At the same time, the agency said it assigned a BB- senior secured debt rating and a recovery rating of 2 to Reynolds Group Holdings' existing $800 million incremental term loan maturing in 2016 and placed this issue rating on Creditwatch with positive implications.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.