Moody’s applies B1 to ACCO notes

Moody's Investors Service said it assigned a B1 rating to ACCO Brands Corp.’s proposed $400 million senior unsecured note offering.

All ratings were affirmed, including the Ba3 corporate family rating.

The outlook is stable.

"Proceeds from the notes together with borrowings under its revolving credit facility and cash on hand, to redeem all of the $500 million notes outstanding," Moody’s senior credit officer Kevin Cassidy said in a news release.

The Esselte Group Holdings acquisition announced in October positions ACCO well in the European office product market and will enable ACCO to further expand its share in a fragmented market, the agency explained. The acquisition will increase ACCO's revenues and EBITDA by more than 25%, assuming about half of the company's $23 million expected costs synergies are achieved.

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