Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers L > Headlines for LSB Industries Inc. > News item |
Moody's rates LSB add-on notes Caa1
Moody's Investors Service said it assigned a Caa1 rating to LSB Industries, Inc.'s proposed $35 million add-on to its $400 million senior secured notes due in 2023.
The company intends to use about $20 million of the proceeds from these notes to invest in various capital projects over the next 12 to 18 months aimed at improving margins, the agency said.
The increase in debt is relatively small and if executed as planned, these projects should enhance LSB's earnings potential and help the company de-lever over time, Moody's said.
Pro forma for these projects, LSB's adjusted debt-to-EBITDA ratio declines slightly to 7x, from 7.5x in the 12 months that ended March 31, 2019, the agency said.
The remainder of the proceeds will be used for general corporate purposes, Moody's said.
All of its other ratings are unchanged and the outlook remains stable.
The ratings reflect the company's weak financial metrics and lack of consistent operating performance amid improved nitrogen fertilizer market fundamentals, the agency said.
© 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.