Moody’s assigns Reynolds Consumer, loan Ba1

Moody’s Investors Service said it assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating to Reynolds Consumer Products LLC. Moody’s also assigned a Ba1 rating to both the company’s proposed $250 million secured first-lien revolving credit facility and $2.475 billion first-lien secured term loan and a SGL-1 speculative-grade liquidity rating. The outlook is stable.

Reynolds Consumer Products Inc., parent company and guarantor of RCP, is in the process of an initial public offering and concurrent separation from Reynolds Group Holdings Ltd. Anticipated proceeds from the initial public offering of $1.25 billion, together with proceeds from the $2.475 billion term loan, will be used to pay a $3.725 billion dividend to Reynolds Group Holdings upon separation.

The Ba1 corporate family rating reflects Reynolds’ solid market position, strong brand name and mature product categories with stable demand, the agency said.

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