Moody's: AdvancePierre loan B1, notes Caa1

Moody's Investors Service said it affirmed the B2 corporate family rating of AdvancePierre Foods, Inc. following its announcement of plans to make a roughly $160 million dividend distribution to its sponsor, Oaktree Capital Management LP, and refinance its existing capital structure.

Concurrent with the affirmation, Moody's assigned a B1 rating to AdvancePierre's proposed $825 million term loan B and a Caa1 rating to its proposed $450 million senior unsecured notes.

The outlook is stable.

Moody's said the B1 rating on the term loan B reflects its seniority in the capital structure relative to the notes as well as its junior position versus the ABL's first-priority interest in the current assets of AdvancePierre.

The Caa1 rating on the notes reflects their junior position relative to both the ABL and term loan B, the agency said.

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