Moody's rates Omnova loan Ba2, notes B2

Moody's Investors Service said it assigned Omnova Solutions Inc.'s proposed $200 million senior secured term loan a Ba2 (LGD 2, 27%) rating and $250 million senior unsecured notes a B2 (LGD 5, 75%) rating.

The agency also said it affirmed its corporate family rating at B1, probability of default rating at B1 and $150 million guaranteed senior secured term loan B due 2014 at B1 (LGD 3, 42%).

The outlook is stable.

The new debt is being issued to fund the pending acquisition of Eliokem International SAS. The rating on the existing term loan B due 2014 will be withdrawn once the debt is refinanced with the proceeds of the new debt.

The agency said it views the announced acquisition of Eliokem as a positive. The acquisition is a good strategic fit, Moody's said, and will provide diversification into new niche product end markets for emulsion polymers.

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