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

Anchor Packaging, LLC: Update following affirmation of B2, outlook stable - Credit Opinion – 2024/04/26 – US$ 250.00 – ...Anchor Packaging's credit profile reflects its moderate scale relative to plastic packaging peers, aggressive financial policy with respect to shareholder returns, and exposure to volatile raw material costs. Anchor Packaging's scale is modest compared to rated packaging peers factoring in both its revenue generation of less than $600 million and its limited manufacturing footprint. The company has continued to deploy capital toward shareholder returns, at times funding these distributions with incremental debt. The credit profile is also constrained by a limited percentage of contracts with pass-throughs of resin costs in the business. At the same time, credit quality is supported by a high percentage of Anchor Packaging's sales to relatively stable end markets including foodservice and grocery, food processor and convenience store retail. The credit profile also benefits from a track record of new business wins, which has supported recent, above-trend volume growth. Anchor Packaging is...

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...

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...

Moody's upgrades Anchor Packaging CFR to B2, affirms 1st lien facilities at B2 - Rating Action – 2020/11/18 – US$ 180.00 – ...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 COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications. To the extent permitted by law, MOODY'S and its directors, officers,...

Anchor Packaging, LLC: Update to credit analysis - Volume-driven earnings growth - Credit Opinion – 2020/06/30 – US$ 250.00 – ...The credit profile reflects the company's small size and market position in the rigid plastic packaging industry. The credit profile is constrained by weak credit metrics, high customer concentration, private equity ownership and potential acquisition risk. The company has a $70 million delayed draw term loan which expires on January 18, 2021 and which could be used to fund additional production lines or for acquisitions. Other constraining factors for the rating include exposure to volatile raw material costs and forex. Strengths in the credit profile include concentration in relatively stable food packaging sold through various channels, including 30% to grocery, retail and convenience store customers and 45% to foodservice and restaurants. Despite stay-at-home orders that negatively impacted in-person dining, Anchor Packaging continued to supply quick service restaurants and customers with drive-through or take out options. Although the company saw a decline in film volume due to school...

Anchor Packaging, LLC: New Issuer - Small foodservice packaging producer with significant growth plans post LBO - Credit Opinion – 2019/06/25 – US$ 250.00 – ...[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. [2] As of 12/31/2018; [3] This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures. Source: Moody's Financial MetricsTM...