Fitch: Albemarle loans BBB-

Fitch Ratings said it assigned a rating of BBB- to Albemarle Corp.’s new $300 million 364-day senior unsecured term loan and new $950 million five-year term loan.

The proceeds are to be used to finance the redemption of Rockwood Specialties Group, Inc.’s $1.25 billion 4 5/8% senior notes due 2020. The term loans have substantially the same covenants as the revolving credit facility.

The company also has a long-term issuer default rating of BBB-, short-term issuer default rating of F3, senior unsecured credit facilities rating of BBB- and senior unsecured notes rating of BBB-.

The outlook is stable.

The ratings reflect the company’s leading market position in bromine, lithium, refining catalysts and surface-treatment chemicals, which generate high margins and strong cash flow, Fitch said.

The ratings also consider the company’s high initial leverage following the January 2015 acquisition of Rockwood Holdings and an expectation that asset sales and free cash flow will be applied to debt reduction, lowering leverage to less than 3x by the end of 2018, the agency said.

The markets for bromine and lithium are highly concentrated and Albemarle is a key

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