Moody's affirms Platform Specialty

Moody's Investors Service said it affirmed Platform Specialty Products Corp.’s ratings following its change in capital structure. The company decreased the size of its new senior secured term loan to $600 million from $1.1 billion and increased the size of its new senior notes due 2022 to $1.52 billion from $920 million. The euro-denominated term loan add-on and notes tranche remain the same at about $100 million and $420 million, respectively.

Specifically, Moody’s affirmed the company’s corporate family rating at B1, probability of default rating at B1-PD, speculative grade liquidity rating at SGL-3 and senior notes at B2 (LDG4), MacDermid Inc.’s senior secured term loans and revolver at B1 (LGD3) and MacDermid Agricultural Solutions Holdings BV’s senior secured term loan at B1 (LGD3). The outlook is negative.

The final structure completes the funding for the $3.51 billion acquisition of Arysta LifeScience Ltd., parent of Arysta LifeScience SPC, LLC (B2/stable). The additional $100 million of long-term debt will be used to fund expected working capital requirements at close and for bond interest prepayment.

The agency said the negative outlook reflects the elevated risk of integrating three companies (Agriphar, AgroSolutions, and Arysta), which increase Platform's aggregate size by almost four times; Platform's elevated leverage of above 5 times and Moody’s expectation that Platform will seek to complete additional acquisitions over the next 12 months.

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