Moody's cuts Pactiv notes

Moody's Investors Service said it withdrew the Baa2 senior unsecured rating of Pactiv Corp. and concluded the review for downgrade that began in August following news of its merger with Reynolds Group Holdings Ltd.

The agency also said it downgraded $276.79 million of 7.95% notes due Dec. 15, 2025 to Caa1 (LGD 6, 92%) from Baa2, $300 million 8.125% bonds due June 15, 2017 to Caa1 (LGD 6, 92%) from Baa2, $200 million 8.375% notes due April 15, 2027 to Caa1 (LGD 6, 92%) from Baa2, $250 million 5.875% notes due July 15, 2012 to Caa1 (LGD 6, 92%) and $250 million 6.4% notes due Jan. 15, 2018 to Caa1 (LGD 6, 92%) from Baa2.

Pactiv's senior notes were downgraded to Caa1 from Baa2 as they remain outstanding and will be assumed by Reynolds Group, Moody's said.

The downgrades reflect the results of Pactiv's tender offer for its $250 million 6.4% notes due in 2018 and the status of the tender offer for its $250 million 5.875% notes due in 2012, the agency said.

The actual financing of the acquisition is overall in line with what Moody's said it expected when it changed the outlook on Reynolds' B2 corporate family rating to negative from stable and assigned provisional ratings for the acquisition debt and indicated that Pactiv notes could be downgraded to Caa1.

© 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.