Moody’s rates Olin notes, loan Ba1

Moody's Investors Service said it assigned Ba1 ratings to Olin Corp.'s proposed senior notes and delayed-draw term loan.

The outlook is unchanged at stable.

Olin plans to issue $750 million of senior notes; establish a $1.2 billion delayed draw term loan; and expand the size of the company's revolving credit facility to $800 million from $600 million.

Proceeds from the proposed $750 million senior notes will be used to take out term debt and borrowings under an accounts receivables securitization, as well as pay fees and expenses and fund general corporate purposes.

Proceeds from the proposed $1.2 billion delayed draw term loan would be used to call about $1.2 billion of senior notes callable in October 2020 and fund a $450 million to $500 million payment to Dow Chemical Co. in 2020.

The expanded revolving credit facility will provide additional liquidity cushion.

“Taken together, the proposed transaction eliminates capital markets risk related to the upcoming calls, extends debt maturities, and improves liquidity. But it will push out the timeline for debt reduction into early 2021,” the agency said in a news release.

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