Moody’s rates EG add-on loan

Moody’s Investors Service said it assigned a B3 rating to the planned $500 million equivalent add-on first-lien backed senior secured term loan borrowed by EG Finco Ltd. and EG America LLC.

The agency concurrently affirmed B3 long-term corporate family rating of EG Group Ltd. and its B3-PD probability of default rating. Moody's also affirmed the B3 and Caa2 ratings on EG's first- and second-lien term loans and backed senior secured instrument ratings issued by its subsidiaries EG Finco, EG Global Finance plc, EG America, EG Dutch Finco BV and EG Group Australia Pty Ltd.

The proceeds will be used to help refinance notes.

“The negative outlook reflects EG's weakened operating performance and weaker-than-expected credit metrics. In the absence of earnings growth Moody's estimates free cash flow generation to be negative, pressuring the rating,” the agency said in a statement.

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