Moody’s assigns Iris PIK notes Caa1

Moody’s Investors Service said it assigned a Caa1 rating to Iris Holdings, Inc.’s proposed $175 million of senior unsecured payment-in-kind toggle notes with the proceeds being distributed to Innophos’ owner One Rock Capital

The agency also affirmed Innophos Holdings, Inc.’s B2 corporate family rating, B2-PD probability of default rating, B1 first-lien term loan and Caa1 rating on the senior unsecured notes due 2028.

The Caa1 rating assigned to Iris’ planned notes due 2026, two notches below the B2 CFR, and on par with Innophos’ unsecured notes, reflects their structural and contractual subordination to Innophos’ unsecured notes, Moody’s said.

“The issuance of the HoldCo PIK toggle notes to fund a dividend demonstrates a more aggressive financial policy; however, the company’s performance during the pandemic reflects its ability to temporarily exceed leverage expectations,” said Domenick R. Fumai, a Moody’s vice president and lead analyst for Innophos, in a press release.

The outlook is stable.

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