Moody's gives Jarden loans Ba1

Moody's Investors Service said it assigned a Ba1 rating to Jarden Corp.'s proposed $750 million senior secured term loans (separated into two tranches), while at the same time affirming all other ratings, including the Ba3 corporate family rating.

The outlook is stable.

Proceeds from the term loans will be used to partially fund the $1.75 billion Yankee Candle acquisition announced last week.

"While acquisitions always come with a certain amount of risk, the transaction is consistent with Jarden's strategy of acquiring leading consumer brands in niche categories," Moody's senior credit officer Kevin Cassidy said in a news release.

Jarden would have pro forma net sales and Moody's adjusted EBITDA of about $7.7 billion and $1.2 billion, respectively, for the 12 months ended June 30, 2013, up from $6.9 billion and about $900 million.

"The transaction will also extend Jarden's portfolio of consumer brands in niche, seasonal staple categories, while creating opportunities in cross-selling and broadening the global distribution platform," Cassidy added in the release. The transaction is expected to close in the fourth quarter.

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