Moody's assigns Reynolds notes Ba3, Caa1

Moody's Investors Service said it assigned to Reynolds Group Holdings Ltd. provisional Ba3 (LGD 2, 25%) ratings to the proposed $500 million senior secured notes due 2021, as well as provisional Caa1 (LGD 5, 77%) ratings to the proposed $500 million senior unsecured notes due 2021.

The ratings of the company's existing debt issues are not expected to change as a result of this refinancing, Moody's said.

The proposed debt issues will be used to extend the group's maturity profile by refinancing about $1 billion of existing senior secured term loans due in 2016 and to reduce the group's interest costs, Moody's said.

The company also intends to refinance additional amounts of its existing senior secured term loans shortly in order to further make smooth the group's debt maturity profile and reduce interest costs, the agency said.

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