Cincinnati-based ProAmpac PG Intermediate LLC is planning to issue an incremental $249 million add-on to its existing $830 million first-lien term loan. Proceeds will be used to finance an acquisition of a flexible packaging manufacturer participating in the heavy duty lawn and garden market, pay related fees and expenses, and for general corporate purposes. We are revising our outlook on the rating to negative from stable and affirming all existing ratings on ProAmpac PG Intermediate LLC, including the 'B' corporate credit rating. The negative outlook reflects the chance that we could lower the ratings during the next 12 months if the company's leverage remains elevated, which could occur from either operational missteps, failure to achieve targeted synergies, or if the
