Moody's rates Refresco B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Pegasus Midco BV, a new entity created for the acquisition of Refresco Holding BV, and top entity of the new restricted group to which the rating is assigned.

Concurrently, Moody's assigned a B2 rating to the proposed €3.4 billion equivalent guaranteed senior secured first-lien term loan B (split in three three tranches) and to the €500 million guaranteed senior secured first-lien revolving credit facility, both issued at the fully owned subsidiary Pegasus BidCo BV.

Moody's said it has withdrawn the B2 CFR assigned at Sunshine Mid BV, the top entity of the existing restricted group. The outlook on the ratings for Pegasus Midco and the debt issued by Pegasus BidCo is positive.

On Feb. 22, Kohlberg Kravis Roberts & Co. LP announced an agreement to acquire a majority stake in Refresco. The existing investors, PAI Partners, British Columbia Investment Management Corp., and management will retain a meaningful stake.

“Refresco's B2 rating reflects the company scale as the leading independent beverage solutions provider company and the wide product offering,” said Ernesto Bisagno, a Moody's vice president – senior credit officer and lead analyst for Refresco, in a news release.

“However, the rating also factors in Refresco's highly leveraged capital structure and the exposure to the current commodity price volatility.”

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