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Moody’s gives R&R Ice Cream loans Ba2
Moody's Investors Service said it assigned a provisional Ba2 corporate family rating to Riviera Midco SA (Froneri).
Concurrently, the agency assigned a provisional Ba2 rating to the proposed €800 million seven-year senior term loan B and €220 million six-year senior revolving credit facility to be issued by R&R Ice Cream plc.
The outlook on all ratings is stable.
Moody’s said the action follows the company's plan to complete the formation of the JV announced on Oct. 5, 2015, between PAI Partners, owner of R&R Ice Cream (B2 stable) and Nestle SA (Aa2 stable). The JV will be formed by the combination of the R&R Ice Cream business in its entirety and Nestle’s ice cream business in Europe, Egypt, the Philippines, Brazil and Argentina. Nestle will also contribute its European frozen food business (excluding pizza and retail frozen food in Italy) and its chilled dairy business in the Philippines.
The JV is expected to be effective on Sept. 30 upon which PAI Partners and Nestle will share equal ownership and board representation.
Proceeds from the new facilities, together with a new €800 million shareholder loan to be provided by Nestle, will be used to refinance the debt of R&R (£315 million senior secured notes due 2020 (B2), euro- and Australian dollar-denominated €255 million equivalent senior secured notes due 2020 (B2) and €253 million senior PIK toggle notes due 2018 raised by R&R PIK plc (Caa1)), and to finance the acquisition and related fees.
Riviera Midco is the top company within the restricted group in relation to the proposed new senior secured financing and a direct subsidiary of Froneri Ltd., the top entity of the Froneri JV.
Moody's said it anticipates that Nestle’s shareholder loan will be issued outside of the restricted group, at Froneri Ltd., although around €200 million of the proceeds will be downstreamed into the restricted group in a form of intercompany loans.
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