Moody's assigns B1 to Sylvamo notes

Moody's Investors Service said it assigned a B1 rating to Sylvamo Corp.’s planned $500 million of senior unsecured notes.

The notes are rated B1, two notches below the Ba2 corporate family rating, and reflect the note's structurally subordinated position behind the expected $450 million revolving credit facility, term loan B and farm credit loans, under Moody's loss given default for speculative-grade companies methodology, the agency said.

The proceeds with the proceeds from the secured term loan issuances will be used to make a special payment to International Paper, which is spinning off the issuer, pay associated fees and expenses and keep an initial cash balance of $120 million for Sylvamo.

All other ratings are unchanged, and the outlook is stable, Moody’s said.

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