Moody’s rates AdvancePierre CFR B1, notes B3

Moody's Investors Service said it assigned AdvancePierre Foods Holdings, Inc. a B1 corporate family rating and B1-PD probability of default rating.

The agency also assigned a B3 rating to the company's proposed $350 million senior unsecured notes offering, the proceeds of which will be used to repay a portion of its existing first-lien term loan resulting in a leverage neutral transaction.

In addition, Moody's assigned a speculative grade liquidity rating of SGL-1.

The outlook is stable.

Moody's is assigning a corporate family rating and probability of default rating to AdvancePierre Foods Holdings because of the newly proposed senior notes issuance at that entity.

In connection with this action, the agency affirmed the B1 rating on the company's $745 million first-lien term loan (pro forma balance following $350 million repayment from notes) issued at AdvancePierre Foods, Inc. that is being repriced concurrent with the senior unsecured notes issuance.

Moody's will withdraw the existing ratings and outlook at AdvancePierre Foods with the exception of the rating on the existing first-lien term loan, at the close of this transaction.

Moody’s said the ratings reflect its expectation that credit metrics will be sustained at levels that support a B1 rating and that the company will maintain at least a good liquidity profile over the next 12 months.

The company's leverage as measured by Moody's adjusted debt-to-EBITDA for the 12 months ended Oct. 1 – pro forma for the October 2016 acquisition of Allied Specialty Foods, Inc. that occurred subsequent to quarter-end – was about 4.4 times.

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