Private equity sponsor KKR agreed to acquire Unilever's global spreads business Flora Food Group (FFG), global leader in plant-based nutrition, for about €6.8 billion. As part of the transaction, FFG intends to issue €4,600 million-equivalent senior secured debt (including €700 million RCF), and €1,050 million senior unsecured notes. KKR will contribute with €2,025 million of equity. We are assigning our preliminary 'B+' long-term rating to FFG and the group's proposed senior secured term facilities, and our preliminary 'B-' rating to the group's senior unsecured notes. The stable outlook reflects our expectation that the group will maintain an adjusted EBITDA margin of 24%-25% and EBITDA interest coverage at about 3.0x. On Feb. 15, 2018, S&P Global Ratings assigned its preliminary 'B+'
