Moody’s assigns Reynolds facilities B1

Moody’s Investors Service said it assigned B1 ratings to Reynolds Group Holdings Inc.’s new senior secured credit facilities, including the proposed $250 million revolving credit facility due 2024 and the $1 billion senior secured term loan due 2026. The agency also assigned Reynolds Group Issuer Inc.’s proposed $1 billion senior secured notes due 2027.

The proceeds, along with those from Reynolds Holdings’ parent’s proposed IPO and available cash, will be used to pay down debt. The new facilities are expected to have the same terms and conditions as the existing facilities and are pari passu.

Moody’s affirmed the company’s B2 corporate family and B2-PD probability of default ratings. The agency also affirmed the B1 rating on the company’s existing senior secured facilities and the Caa1 rating on the company’s existing senior unsecured notes. And finally, the company’s SGL-2 speculative grade liquidity rating is maintained.

“The existing senior unsecured notes at Reynolds Group Issuer Inc. due 2024 and the $302 million revolving credit facility due 2021 at Reynolds Group Holdings Inc. will be withdrawn at the close of the transaction as they are expected to be completely paid down,” Moody’s said in a press release.

The outlook remains stable.

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