Moody's rates Champ revolver B1

Moody's Investors Service said it assigned new ratings and revised existing ratings to bank credit facilities being issued by Champ Acquisition Corp.

Champ is the parent company of Jostens, Inc.

Moody's said it is taking these actions in response to changes being made to the proposed financing by Platinum Equity to acquire Jostens from Newell Brands and pay transaction fees and expenses.

None of these actions reflect any change in the fundamental view of the credit profile of Champ or Jostens, the agency explained.

In response to these structural changes, Moody's said it assigned a B1 (LGD 3) rating to Champ's proposed $150 million senior secured first-lien bank revolving credit facility.

This now proposed first-lien revolver will replace the previously proposed super priority revolver, the Ba2 (LGD 1) rating for which will now be withdrawn.

The upgrade reflects recent changes to the deal structure related to Platinum Equity's acquisition of Jostens, the agency said.

The first-lien revolver and first-lien term loan will share the same collateral and rank equally in right of payment in a bankruptcy liquidation, Moody's noted.

The second-lien term loan is subordinated in right of payment to both the first-lien revolver and the first-lien term loan, the agency said.

Moody's also said it upgraded the rating on Champ's proposed senior secured first-lien term loan to B1 (LGD 3) from B2 (LGD 3).

The first-lien term loan will be increased to $775 million from $750 million.

The upgrades reflect the fact that the first-lien term loan and the newly proposed first-lien revolver will now be pari passu and should have the same rating, the agency said.

Moody's affirmed Champ's B2 corporate family rating, B2-PD probability of default rating and Caa1 (LGD 5) rating on the proposed $150 million secured second-lien term loan.

The outlook is stable.

The ratings reflect the company's high pro forma financial leverage at about 5.1x upon completion of its proposed leveraged buyout by Platinum Equity, Moody's said.

The ratings also reflect the company's narrow product focus as a manufacturer and seller of school-related affinity products in U.S. high schools and universities, the agency said.

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