Moody’s gives Citadel loans B2, Caa1

Moody's Investors Service said it assigned a corporate family rating of B2 and a probability of default rating of B2-PD to Citadel Plastics Holdings, Inc.

The outlook is stable.

Concurrently, the agency assigned a B2 rating to Citadel Plastics' proposed $330 million first-lien senior secured credit facility due 2020 and a Caa1 rating to the company's proposed $100 million second-lien senior secured credit facility due 2021. The $330 million first-lien senior secured credit facility consists of a $30 million revolving credit facility and a $300 million term loan facility.

Citadel Plastics plans to acquire Composites Group (unrated), a U.S.-headquartered manufacturer of thermoset product solutions. The Composites Group acquisition is expected to close in early November.

Proceeds from the proposed senior secured credit facilities will be used to repay existing debt, fund the acquisition of Composites Group and pay fees and expenses related to the transaction.

"While Citadel Plastics is well positioned in the North American thermoset and thermoplastics materials space, the B2 CFR primarily reflects the company's acquisitive nature and resulting elevated leverage," Moody's vice president, senior credit officer and lead analyst for Citadel Plastics, Anthony Hill, said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.