Moody's rates ROI loan B2

Moody's Investors Service said it assigned B2 corporate family and B2-PD probability of default ratings to ROI Acquisition Corp. in connection with a proposed reverse acquisition.

The agency also assigned it a speculative-grade liquidity rating of SGL-2.

At the close of the transaction, ROI Acquisition, parent of Anchor Hocking, LLC and Oneida, Ltd., will be renamed EveryWare Global, Inc.

Moody's also said it assigned a B2 (LGD 4, 54%) rating to the proposed $250 million senior secured term loan due in 2019 issued with Anchor Hocking and Oneida as co-borrowers.

The outlook is stable.

The proceeds from loan, along with about $180 million of equity, will be used to fund the transaction, Moody's said.

The reverse merger will increase EveryWare's financial leverage, said Kevin Cassidy, a Moody's analyst. Its pro forma debt-to-EBITDA ratio will be high initially at over 6x, weakly positioning the company in the rating category, Cassidy said.

But given the company's relatively stable replenishment business model and an expectation that the company will reduce leverage by repaying debt and through modest earnings growth, the agency said it believes credit metrics will gradually improve.

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