S&P affirms KoSa notes, loan

Standard & Poor's said it affirmed its BB senior secured bank loan rating and recovery rating of 2 on KoSa BV's $1.9 billion of bank credit facilities. At the same time, S&P affirmed its B+ rating on the company's $675 million senior unsecured notes due 2012 and lowered its corporate credit rating to BB from BB+ and removed all ratings from CreditWatch with negative implications.

Ratings originally were placed on CreditWatch with developing implications on Aug. 12, 2003 following the announcement that KoSa's parent, Koch Industries Inc., had entered into exclusive negotiations with E.I. DuPont de Nemours & Co. regarding the possible purchase of Invista, formerly DuPont Textiles & Interiors. The CreditWatch was updated on Nov. 18, 2003 following the announcement that Koch had agreed to purchase Invista from DuPont.

On March 9, S&P revised its CreditWatch implications to negative from developing, as the financing plan came into greater focus. At that time, S&P indicated that once the acquisition of Invista had been completed, the CreditWatch listing would be resolved, the corporate credit rating of KoSa would be lowered to BB from BB+, and the new ratings that had been assigned in connection with the financing plan would be affirmed.

The acquisition was completed as expected on April 30.

Proceeds from the new bank credit facilities and the senior notes have been used to repay amounts outstanding under the company's existing credit facility and to finance the acquisition of Invista (along with more than $2 billion of cash from Koch), which has been merged with KoSa. At some point, KoSa BV may be renamed Invista.

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