Moody's rates Juice Plus loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to JP Intermediate B, LLC, the indirect parent of the Juice Plus Co., LLC.

Juice Plus is a direct seller of whole food, plant-based nutritional supplements, Moody's explained.

The agency also said it assigned B2 (LGD 3) ratings to the company's proposed credit facilities.

These include a $50 million senior secured first-lien revolving credit facility and $438 million secured first-lien term loan.

The proceeds from the term loan, a $105 million seller note, $542 million of common equity and $150 million of preferred equity will be used to finance the purchase of Juice Plus by private equity firm Altamont Capital, Moody's said.

The outlook is stable.

The ratings reflect Juice Plus's narrow product line of nutritional supplements, focus on a supplements industry that is highly competitive and subject to changing consumer preferences, the agency said, and the inherent risks related to its multi-level marketing business model.

The ratings are constrained by the company's high financial leverage following its acquisition by Altamont, Moody's said.

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