Bulletin: High Liner Foods Inc. Ratings Unchanged On Plan To Acquire Rubicon Resources LLC

TORONTO (S&P Global Ratings) May 30, 2017--S&P Global Ratings today said that its ratings on High Liner Foods Inc. (B+/Stable/--) are not affected by the company's acquisition of Rubicon Resources LLC for US$107 million. Rubicon is an importer and marketer of frozen and value-added shrimp products in the U.S. grocery, club, and foodservice channels. The acquisition was originally financed with a US$75 million borrowing on the company's asset-based loan (ABL) and US$32 million of High Liner common stock to Rubicon's management. High liner is proposing to term out the acquisition with a US$70 million incremental term loan that will be primarily used to repay borrowings under its ABL. The acquisition is consistent with our view of High Liner using debt-funded

...TORONTO (S&P Global Ratings) May 30, 2017--S&P Global Ratings today said that its ratings on High Liner Foods Inc. (B+/Stable/--) are not affected by the company's acquisition of Rubicon Resources LLC for US$107 million. Rubicon is an importer and marketer of frozen and value-added shrimp products in the U.S. grocery, club, and foodservice channels. The acquisition was originally financed with a US$75 million borrowing on the company's asset-based loan (ABL) and US$32 million of High Liner common stock to Rubicon's management. High liner is proposing to term out the acquisition with a US$70 million incremental term loan that will be primarily used to repay borrowings under its ABL. The acquisition is consistent with our view of High Liner using debt-funded acquisitions to build capacity for growth and diversify its product offerings. We expect High Liner will continue to offset the decline in its core breaded and battered products through new frozen seafood products to better align with...

Bulletin