Moody’s assigns B3 to Post notes

Moody's Investors Service said it assigned B3 ratings to Post Holdings, Inc.'s proposed $1.5 billion of senior unsecured notes.

Proceeds will be used primarily to fund the redemption of $1.08 billion of existing senior unsecured notes. Any remaining proceeds will be used for general corporate purposes, including to supplement cash balances and to fund future acquisitions.

The agency also affirmed all of Post's existing ratings, including the B2 corporate family rating, B2-PD probability of default rating, SGL-2 speculative grade liquidity rating, Ba2 senior secured debt rating and B3 senior unsecured debt rating.

The outlook is stable.

The proposed notes will be issued in two tranches consisting of eight-year notes and 10-year notes. The notes that Post intends to redeem are $875 million of 6¾% senior unsecured notes due 2021 and $133 million of 7 3/8% senior unsecured notes due 2022. The ratings on these notes will be withdrawn upon repayment.

At closing, Post's cash balances will be roughly $1.3 billion.

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