Moody’s gives Freshworld loan B2

Moody’s Investors Service said it gave a B2 rating to Freshworld Holding IV GmbH’s new €200 million guaranteed senior secured term loan maturing in 2026. The agency also changed the outlook for Freshworld Holding IV and Freshworld Holding III GmbH (Freshworld) to positive from stable.

Concurrently, Moody's affirmed the rating on the B2 instrument ratings of the guaranteed senior secured term loan maturing in 2026 and the guaranteed senior secured revolving credit facility maturing in 2026.

The agency also affirmed Freshworld’s B2 corporate family rating and the B2-PD probability of default.

Freshworld plans to use the new loan and €7 million of balance sheet cash to buy Sebach.

“The affirmation of the B2 CFR with a positive outlook reflects the increased pro forma scale and diversification with the acquisition of Sebach, its strong operating performance since LBO in 2019, and Moody's expectation that operating performance improvements will be sustained in a weaker macroeconomic environment, resulting in Moody's adjusted debt /EBITDA below 4.5x and continued positive free cash flow (FCF) generation, with FCF/debt in mid-single digits in the next 18-24 months,” Moody’s said in a press release.

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