Moody's ups Alliance One senior notes to B2, rates subordinated notes B3

Moody's Investors Service said it affirmed the B1 rating of the proposed senior secured credit facilities of Alliance One International Inc., upgraded the rating of the proposed senior unsecured notes to B2 from B3 and assigned a B3 rating to the company's proposed $100 million senior subordinated notes.

The rating actions follow the revision announced on May 10 of the company's contemplated capitalization structure.

On May 10, Dimon and Standard Commercial announced a change in the capitalization structure to be put in place at closing of the merger between the two companies. In November 2004, Dimon and Standard Commercial announced their intent to combine under a 100% stock merger, with Dimon being the surviving corporation, which will be renamed Alliance One International Inc, according to Moody's.

The previously anticipated structure was comprised of a three-year $150 million secured tranche A term loan, a five-year $200 million secured tranche B term loan, a three-year $300 million secured revolving credit facility and $450 million in unsecured senior notes due in 2012 and 2013.

In the new anticipated structure, the $450 million unsecured senior notes will be replaced by $315 million in senior notes and $100 million in senior subordinated notes. Initial revolving credit funding will be increased by $25 million.

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