Moody's gives CeramTec B3, loans B2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to CTEC II GmbH (CeramTec), the new top entity of CeramTec's restricted group. Moody's also gave B2 instrument ratings to the planned €1.43 billion equivalent senior secured term loan B maturing 2029 and €250 million senior secured revolving credit facility maturing 2028, to be raised by CTEC III GmbH, a subsidiary of CTEC II.

Proceeds from the new TLB and €515 million of other junior-ranking debt along with an equity investment will be used to finance the acquisition of CeramTec by BC Partners Fund XI and Canada Pension Plan Investment Board from BC European Capital X and its co-investors, to refinance debt and pay transaction fees and expenses.

Concurrently, Moody's withdrew the B3 CFR and B3-PD of CeramTec BondCo GmbH. The instrument ratings on the senior secured term loans and the senior secured revolver raised by CTC AcquiCo GmbH as well as the senior notes issued by CeramTec BondCo remain unchanged. Moody's said it expects the loans and notes to be repaid upon closing of the acquisition and to withdraw the instrument ratings upon repayment.

The outlook on CTEC II GmbH and CTEC III GmbH is stable.

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