DBRS Finalizes Provisional Ratings on Kruger Products L.P.

DBRS Limited (DBRS) finalized the provisional Issuer Rating of BB and the provisional Senior Unsecured Notes (the Notes) rating of BB (low) with a Recovery Rating of RR5 on Kruger Products L.P. (KPLP or the Company). All trends are Stable. After its review of all documentation associated with the recent offering, DBRS has confirmed that all terms of the issuance of the Notes were consistent with those contemplated at the time the provisional ratings were assigned on April 16, 2018.

The aggregate gross proceeds from the Notes totalled $125 million. The Notes mature on April 24, 2025, and bear interest at a fixed annual rate of 6.00%. Proceeds from the Notes were used to reduce the outstanding balance under the Syndicated Credit Facility and for general corporate purposes.

For additional information on DBRS’s view of the credit quality of KPLP, or its recent debt issuance, please refer to the DBRS presale report dated April 16, 2018.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodologies are Rating Companies in the Consumer Products Industry and DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on dbrs.com under Methodologies.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

DBRS will publish a full report shortly that will provide additional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.