Moody’s gives Amplify Snack CFR, facilities B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Amplify Snack Brands Inc.

The agency also assigned a B2 (LGD 3) rating to the company's proposed $650 million in credit facilities and an SGL-2 speculative grade liquidity rating.

The outlook is stable.

The proposed facilities consist of a $50 million first-lien secured revolver and $600 million first-lien secured term loan.

Debt is being issued to fund the previously announced acquisition of U.K.-based Crisps Topco Ltd. and subsidiaries (Tyrrells), and to refinance Amplify's existing debt. Tyrrells' owners will receive about $363 million in cash and 2.1 million shares of Amplify's common stock, bringing the total purchase price to about $393 million. Amplify expects the transaction to close by the third quarter.

Moody’s said the B2 corporate family rating reflects the company’s small scale, high product concentration, limited operating history, and high financial leverage.

The rating also reflects Amplify's high operating margins, and the strong market position of the company's SkinnyPop brand within the narrowly defined but growing ready-to-eat popcorn category, the agency added.

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