Moody's gives B1 to C.H. Guenther loan

Moody's Investors Service said it assigned a B1 rating to CHG PPC Parent LLC's (C.H. Guenther) new €230 million first-lien senior secured term loan B maturing in 2028.

The company's other ratings including the B2 corporate family rating, its B2-PD probability of default rating, the B1 ratings for its first-lien senior secured credit facilities and negative outlook are unchanged, the agency said.

C.H. Guenther will use the new loan to repay the €190 million first-lien senior secured term loan due 2025 and add $37 million of cash to the balance sheet. The company also intends to upsize the $250 million first-lien senior secured revolver due 2026 by $25 million to $275 million. The $289 million second lien senior secured term loan is not rated.

Moody's said it plans to withdraw the B1 rating on the existing first-lien term loan due 2025 at the close of the refinancing if it is retired as expected.

“The refinancing transaction is credit positive because it will extend the company's maturity profile with the next maturity being the revolver expiry in 2026,” Moody’s said in a press release.

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