Moody's rates General Chemical loans B1

Moody's Investors Service said it assigned to General Chemical Holding Co. a B1 corporate family and probability of default ratings, along with a B1 (LGD 3, 44%) on its $30 million senior secured revolver due 2014 and B1 (LGD 3, 44%) on its $425 million senior secured term loan B due 2015.

The agency also said it affirmed GenTek Holding, LLC's $30 million senior secured revolver due 2013 at B1 (LGD 3, 42%) and $325 million senior secured term loan B due 2014 at B1 (LGD 3, 42%).

The outlook is stable.

In October 2009, GenTek Inc. was acquired by ASP GT Holding Corp., a wholly owned subsidiary of investment funds managed by American Securities LLC, a private equity firm.

General Chemical has proposed a refinancing of the existing credit facilities with a new $30 million, four-year, senior secured revolver and $425 million five-year senior secured term loan.

The proceeds will be used to refinance the company's existing credit facilities and fund a $150 million distribution to shareholders.

The ratings are weakly positioned in the B1 category and reflect the company's significant debt leverage, a small revenue base relative to adjusted debt balances, negative tangible net worth and reduced asset profile in its restructured operations, Moody's said.

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