Moody's rates Olin notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Olin Corp.'s offering of $175 million of 10-year notes.

Proceeds from the new debt along with balance sheet cash will be used to acquire K.A. Steel Chemicals for $328 million. The outlook is stable.

"Despite the high valuation multiple, we view this as an important strategic acquisition that greatly improves Olin's downstream integration by adding caustic soda distribution, expanding its bleach capacity and providing a platform for the distribution of other chlor alkali derivatives," said John Rogers, a senior vice president at Moody's, in a news release.

Olin's Ba1 corporate family rating reflects its small size, the historic concentration of profitability in a single commodity chemical product line, a sizable dividend and significant environmental liabilities relative to the size of the company.

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