Anchor Packaging, LLC: Update following affirmation of B2, outlook stable

Moody's Ratings affirms Anchor Packaging's B2 CFR and assigns B2 ratings to proposed amended&extended bank credit facility, outlook stable - Rating Action – 2024/04/25 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Anchor Packaging, LLC: Update to credit analysis - Credit Opinion – 2023/05/30 – US$ 250.00 – ...Anchor Packaging, LLC's B2 corporate family rating (CFR) reflects the company's steady growth in packaging demand for food delivery and takeout, which has supported sales volume since the coronavirus pandemic. The CFR is also supported by a restrained level of capital spending that supports free cash flow (FCF) generation, a fairly diverse customer base, and the ability to pass through resin costs in the majority of its business, although with a time lag. These credit strengths are counterbalanced with the company's credit weaknesses, including its small scale with around $592 million in revenue for the twelve months that ended March 2023, profit volatility caused by a lag to pass through increases in input costs, and aggressive financial policy under private equity ownership with a focus on shareholder returns and potential acquisitions to supplement growth. The company also maintains good liquidity. Profit improved in 2022, as the company passed through resin prices and raw material costs...

Anchor Packaging, LLC: Update following affirmation of B2 with a stable outlook - Credit Opinion – 2022/05/23 – US$ 250.00 – ...Anchor Packaging, LLC's B2 corporate family rating (CFR) reflects the company's small scale, with around $595 million in revenue for the twelve months that ended March 2022, high leverage and weak cash flow generation, with a lag to pass through increases in input costs, high debt load under its private equity ownership, with ongoing acquisition risk to supplement growth. These credit weaknesses are counterbalanced with the company's credit strengths including steady growth in packaging demand for food delivery and take-out that has supported sales volume since the pandemic. The CFR is also supported by a fairly diverse customer base and ability to pass through resin costs on the majority of its business, albeit with time lag. We expect the company to generate improved profit and limit capital spending, which will support free cash flow (FCF) generation and deleveraging in 2022 relative to 2021. The credit profile reflects good liquidity....

Moody's affirms Anchor Packaging B2 CFR; outlook stable - Rating Action – 2022/05/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Anchor Packaging, LLC: Update following upgrade to B2, stable outlook - Credit Opinion – 2020/11/20 – US$ 250.00 – ...The credit profile reflects the company's small scale, weak credit metrics, increased debt load under the current private equity ownership and ongoing acquisition risk to supplement strong organic volume growth. The absolute debt level has increased by $130 million since we first rated the company in July 2019, but earnings growth and free cash flow have exceeded our original expectations due to strong volume growth. Pro forma for the proposed dividend recap and repayment of second lien debt, Moody's estimates debt/EBITDA including Moody's standard lease adjustments at 5.2x in the twelve months ended September 30, 2020 and EBITDA/Interest coverage is about 3.8x. Strengths in the credit profile include strong EBITDA margins (over 20%) and free cash flow generation, concentration in mostly stable food packaging and volume growth despite significant exposure to foodservice/restaurant segments (about 50% of sales). The credit profile is also supported by a fairly diverse customer base and ability...