Moody’s applies B3 to Cott notes

Moody's Investors Service said it assigned a B3 rating to Cott Corp.’s eight-year senior unsecured notes being issued under its subsidiary Cott Holdings, Inc.

All ratings for Cott are unchanged, including the stable outlook.

Note proceeds will be used for general corporate purposes, including to refinance upcoming debt maturities.

Moody’s said the B2 corporate family rating reflects Cott’s growing geographic and business diversification following the acquisitions of Eden Springs and S&D Coffee, continuing its transformation away from its legacy private label beverage business which has been in decline.

While leverage is elevated as a result of the recent acquisitions, it remains acceptable for the current rating with debt/EBITDA (including Moody's standard adjustments) of about 4.9 times at year-end fiscal 2016, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.