Moody's: KoSa on review for downgrade

Moody's Investors Service said it placed the ratings of KoSa BV under review for possible downgrade.

The action affects the company's Ba3 rated $200 million guaranteed senior secured revolver due 2004, $247 million guaranteed senior secured term loan A due 2004, $222 million guaranteed senior secured term loan B due 2006, and B2 senior unsecured issuer rating.

Moody's said the review was prompted by Koch Industries Inc.'s announcement that it has reached a definitive agreement to buy INVISTA (formerly known as DuPont Textiles & Interiors) from E.I. Du Pont De Nemours & Co. for $4.4 billion in cash. Koch plans to combine INVISTA with KoSa (Koch is the 100% owner of KoSa).

The transaction is expected to close in the first half of 2004.

Moody's said the transaction would transform KoSa into a large-scale fiber business, with about $8 billion in combined revenues.

The review will examine the impact of the transaction on KoSa's operations, the proposed capital structure, and KoSa's strategic fit within the organization. The review will also consider the operating performance of INVISTA, the competitive landscape, and the market share of the combined businesses. Moody's noted that KoSa expects to refinance its debt as part of this pending transaction.

© 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.