Moody’s rates Saratoga Food loan B2

Moody's Investors Service said it assigned a B2 senior secured rating to the planned $420 million term loan B borrowed by Saratoga Food Specialties LLC, a wholly owned subsidiary of Solina Group Holding.

Solina will use the loan to refinance Saratoga’s $320 million senior secured TLB due in July 2028, to finance a bolt-on acquisition and the buyout of some minority stake in Zafron and to support expansion capital expenditures. Moody's said it expects to withdraw the B2 rating on the outstanding loan once it is repaid.

“Moody's views the refinancing as credit neutral. The transaction leads to a temporary increase in leverage of around 0.4x-0.5x pro forma for the envisaged bolt-on acquisition. However, the rating is comfortably positioned at the B2 level, supported by continued solid operating performance and improvement of credit metrics,” the agency said in a statement.

The outlook is stable.

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