Moody's rates Florida Food add-on B2

Moody's Investors Service said it assigned a B2 rating to Florida Food Products, LLC's planned $151.5 million first-lien term loan add-on due 2028.

The B2 on the company's senior secured first-lien credit facilities, consisting of a $50 million revolver due 2026 and a $444 million term loan due 2028, and the Caa2 rating for the company's $126 million senior secured second-lien term loan are unchanged. FFP's other ratings also remain unchanged,

FFP will use the proceeds to partly fund the acquisition of Javo Beverage Co. Inc. and repay borrowings under its revolving credit facility. The remaining financing for Javo will be comprised of common equity from its private equity owners, Ardian and MidOcean Partners.

“Moody's views the transaction as credit negative. Although pro forma debt-to-EBITDA leverage increases slightly to 6.5x from 6.4x as of March 30, 2022 (based on the company's estimate of Javo's EBITDA), Moody's believes integration risk increases significantly,” the agency said in a press release.

The outlook remains stable.

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