DBRS Finalizes Provisional Ratings on Kruger Packaging Holdings L.P.

DBRS Limited (DBRS) finalized its provisional Issuer Rating of BB (high) and provisional Senior Unsecured Notes (the Notes) rating of BB (high) with a Recovery Rating of RR3 on Kruger Packaging Holdings L.P. (KPH). 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 May 15, 2019.

The aggregate gross proceeds from the Notes totaled $125 million. The Notes mature on June 1, 2026, and bear interest at a fixed annual rate of 6.00%. Net proceeds from the Notes will be used to repay the outstanding balance under the Syndicated Construction Facility (senior bank term debt) and make a distribution to unitholders.

For additional information on DBRS’s view of the credit quality of KPH, or its recent debt issuance, please refer to the DBRS presale report dated May 15, 2019.

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

The principal methodologies are Rating Companies in the Forest Products Industry (March 2019), DBRS Criteria: Guarantees and Other Forms of Support (January 2019), DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers (October 2018) and DBRS Criteria: Rating Corporate Holding Companies and Their Subsidiaries (November 2018), which can be found on dbrs.com under Methodologies & Criteria.

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 addi¬tional analytical detail on this rating action. If you are interested in receiving this report, contact us at info@dbrs.com.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada