Moody's: Reynolds loan Ba3, notes Ba3, Caa1

Moody's Investors Service said it affirmed Reynolds Group Holdings Ltd.'s B2 corporate family and probability of default ratings.

The agency also said it assigned a definitive Ba3 (LGD 2, 26%) rating to Reynolds Group Holdings Inc.'s $2 billion senior secured term loan due Aug. 9, 2018 and affirmed the Ba3 (LGD 2, 26% from 27%) rating on its €80 million senior secured revolving credit facility due Nov. 5, 2014, $120 million senior secured revolving credit facility due Nov. 5, 2014, $2.33 billion senior secured term loan E due Feb. 9, 2018 and €250 million senior secured term loan E due Feb. 9, 2018.

Moody's also said it assigned a definitive Ba3 (LGD 2. 27%) rating on Reynolds Group Issuer (Luxembourg) SA and Reynolds Group Issuer LLC's $1.5 billion of 7 7/8% senior secured notes due Aug. 15, 2019 and a Caa1 (LGD 5, 77%) to its $1 billion of 9 7/8% senior unsecured notes due Aug. 15, 2019.

The agency also said it affirmed the Ba3 (LGD 2, 26% from 27%) rating on its $1.13 billion of 7¾% senior secured notes due Nov. 15, 2016, €450 million of 7¾% senior secured notes due Nov. 15, 2016, $1.5 billion of 7 1/8% senior secured notes due April 15, 2019 and $1 billion of 6 7/8% senior secured notes due Feb. 15, 2021, along with the Caa1 (LGD 5, 77% from 79%) rating on its $1 billion of 8½% senior unsecured notes due May 15, 2018, $1.5 billion of 9% senior unsecured notes due April 15, 2019 and $1 billion of 8¼% senior unsecured notes due Feb. 15, 2021.

The agency also said it affirmed Beverage Packaging Holdings (Lux) II SA's Caa1 (LGD 5,77% from 79%) €480 million of 8% senior unsecured notes due Dec. 15, 2016 and Caa1 (LGD 6, 96%) €420 million of 9½% senior subordinated notes due June 15, 2017.

Moody's also affirmed the Caa1 (LGD 6, 93%) rating on Pactiv Corp.'s $250 million of 5 7/8% notes due July 15, 2012, $300 million of 8 1/8% bonds due June 15, 2017, $250 million of 6.4% notes due Jan. 15, 2018, $276.79 million of 7.95% bonds due Dec. 15, 2025 and $200 million of 8 3/8% notes due April 15, 2027.

The agency also said it affirmed Graham Packaging Company LP's B2 corporate family and probability of default ratings, which will be withdrawn, and confirmed the B1 (LGD 3, 35%) rating its $124.8 million revolver due Nov. 10, 2013, $1038.1 million term loan C due April 5, 2014 and $913 million term loan C due Sept. 23, 2016.

The agency also said it affirmed the Caa1 (LGD 5, 77% from 83%) rating on Graham's $253.38 million of senior unsecured notes due Dec. 1, 2017, $250 million of senior unsecured notes due Nov. 1, 2018 and $375 million of senior subordinated notes due Nov. 7, 2014. Its outlook was revised to negative.

The ratings reflect the group's credit metrics, integration risk and limited operating history for the combined entity, Moody's said.

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