Moody's rates WEPA notes B2

Moody's Investors Service said it assigned a provisional B1 corporate family rating to WEPA Hygieneprodukte GmbH.

Upon confirmation of the capital structure and assignment of definitive ratings, Moody's said it would expect to assign a B1-PD probability of default rating.

Concurrently, Moody's assigned a provisional B2 (LGD4-68%) rating to the proposed €250 million senior secured notes due 2020 to be issued by WEPA.

The outlook is stable.

Moody's said the assignment of definitive corporate family and probability of default ratings is subject to the successful closing of the refinancing and placement of the notes.

WEPA will use €237 million of net proceeds from the issuance together with about €29 million of initial borrowings und a new revolving credit facility to repay existing bank borrowings and related interest hedges.

In addition, WEPA will use €25 million of proceeds to subscribe for new shares in its affiliate MKG. MKG in turn intends to use these funds to repay indebtedness incurred in connection with the repurchase of the 32% stake in the WEPA group from Pamplona in 2012, the agency said.

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