Moody's rates CII Carbon loans B1

Moody's Investors Service said it assigned a B1 rating to CII Carbon LLC's $220 million guaranteed senior secured term loan, a B1 rating to its $50 million guaranteed senior secured revolver and a B1 Corporate Family Rating.

The outlook is stable.

Proceeds from the bank borrowings will be used to fund CII's purchase of Venture Coke Co. (Venco), a privately owned coke calcining joint venture, and to refinance existing debt.

Moody's said the B1 rating considers CII's relatively small revenue base, increased leverage following the Venco acquisition, exposure to cyclical demand and production rates of the primary aluminum industry, and a relatively small number of both key suppliers for green coke raw material requirements and customers, i.e., aluminum smelters to which calcined coke is sold for use in the production of carbon anodes.

The rating is supported by the relative stability of CII's revenues, its free cash flow generating ability, long-term relationships with customers as well as raw material suppliers, and ancillary revenues derived from energy sales, the agency said.

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