Moody's assigns Ba3 to Emerald notes

Moody's Investors Service said it assigned Ba3 instrument ratings to the new, $2.75 billion equivalent backed senior secured notes issuance by Emerald Debt Merger Sub LLC (Copeland) and a direct subsidiary of Copeland, Emerald Co-Issuer Inc.

The company's B1 corporate family rating, B1-PD probability of default rating and Ba3 rating on its senior secured first-lien term loan B remain unchanged, the agency said.

“The assignment of the Ba3 rating to the new secured notes issuance represents effectively no change to Copeland's existing secured debt ratings, which are one notch above Copeland's CFR. Similar to the senior secured bank debt, the notes benefit from their seniority position to the company's senior unsecured liabilities and sizable $2.25 billion of PIK seller financing. The bank facility and senior secured notes are secured by a first-lien pledge of assets,” Moody’s said in a press release.

The proceeds from the first-lien senior secured term loan launched last week and the notes will be used to partially fund Blackstone's acquisition of about a 55% stake in the climate technologies business of Emerson Electric Co.

The outlook is stable.

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