Moody's rates B2 to Ring Container loans

Moody's Investors Service said it assigned a B2 rating to Ring Container Technologies Group, LLC's planned senior secured credit facility, consisting of a $50 million first-lien revolver due 2026 and seven-year $770 million term loan, and affirmed the B2 corporate family rating and B2-PD probability of default rating.

Term loan proceeds and $59 million of cash will be used to refinance the term loan outstanding and fund a dividend to shareholders. As part of the rating action, Moody's also affirmed the B2 rating on the existing first-lien credit facilities, which will be withdrawn at close.

Pro forma, Ring’s debt to LTM EBITDA (inclusive of Moody's adjustments) at March 31, increases to 6.3x. “Through EBITDA improvement, partially from new business wins in the PET segment, Moody's forecasts debt to EBITDA to decline to 5.4x and 5.1x at year end December 2022 and 2023, respectively,” the agency said in a press release.

The outlook is stable.

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