Moody’s rates Kraton notes B3, loan Ba3

Moody’s Investors Service said it assigned a B3 rating to the new euro senior notes due 2026 to be issued by Kraton Polymers LLC and guaranteed by Kraton Corp. (B1 stable).

The agency also assigned a Ba3 rating to the upsized and amended dollar-denominated first-lien senior secured term loan.

Kraton plans to refinance its existing $440 million 10˝% senior notes due 2023 with a combination of the new notes, a $90 million add-on to its existing term loan, $56 million of borrowings under its existing asset-based facility and cash on hand.

Moody’s said the proposed transaction will slightly increase the company's net debt leverage but will not meaningfully change the company's solid position in the B1 rating category thanks to improved earnings and debt reduction over the last 12 to 18 months.

© 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.