Moody’s gives B2 to Mauser loan

Moody's Investors Service said it assigned a provisional B2 rating to Mauser Holding Sarl's proposed €100 million equivalent new senior secured tranche C term loan, alongside the existing €823 million equivalent senior secured first-lien term loan due June 2021.

The agency also affirmed Mauser Holding GmbH's B3 corporate family rating, B3-PD probability of default rating, and B2 ratings on Mauser Holding Sarl's €823 million equivalent senior secured term loan due 2021, €150 million senior secured revolving credit facility due 2019, €50 million senior secured capex/acquisition facility due 2021 and the Caa2 rating on the €369 million senior secured second-lien term loan.

The outlook on all ratings is stable.

Proceeds from the new €100 million senior secured incremental tranche C term loan facility will be used to fund two acquisitions. The agency expects the terms and conditions of the new tranche C facility to be in line with the existing first-lien term loan.

Moody’s said the assignment and affirmation reflect its view that the proposed acquisitions are positive for Mauser's business profile positioning the company more strongly in the specialty steel drums segment and enabling it to expand its fast growing intermediate bulk container and reconditioning capabilities. The acquisitions will also increase revenues generated in the United States.

In addition, Moody's expects that the company will achieve post-acquisition synergies in plant consolidation, procurement and freight optimization.

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