Moody's rates Lansing notes B3

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Lansing Trade Group LLC and a B3 (LGD6, 91%) rating to its proposed $175 million senior notes due 2021. The outlook is stable.

The proceeds of the notes will be used to repay existing term loan debt used to finance the partial redemption of shares owned by Andersons Agriculture Group LP, $15 million of subordinated notes and revolver borrowings.

The agency said Lansing's B1 corporate family rating reflects the company's modest size, market position and significant reliance on merchandising in one region (primarily North America) for the majority of its earnings.

The corporate family rating is supported by the company's currently low leverage, solid cash flow metrics, adequate liquidity profile and the benefit it receives from its diverse customer base and long-term relationships with customers, Moody's said.

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