Moody’s rates LSB Industries notes Caa1

Moody's Investors Service said it assigned Caa1 ratings to LSB Industries, Inc.'s proposed $400 million senior secured notes due in 2023.

Proceeds will be used to repay its existing $375 million senior secured notes due in 2019, pay fees and expenses and for general corporate purposes.

“The proposed offering is mostly leverage neutral, but will extend the company's debt maturity profile,” the agency said in a news release.

All other ratings are unchanged and the outlook remains stable.

Moody’s said it will withdraw the rating on the existing notes once the transaction closes.

“LSB's rating reflects weak financial metrics and lack of consistent operating performance as well as a slow recovery in the nitrogen fertilizer market,” the agency said in a news release.

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