Moody’s rates Omnova loan B1

Moody's Investors Service said it affirmed Omnova Solutions Inc.'s B1 corporate family rating and assigned a B1 rating to a proposed $350 million senior secured term loan.

Proceeds from the new debt will be used to refinance the existing unsecured notes and secured term loan.

The agency also assigned a speculative grade liquidity rating of SGL-2.

The outlook is stable.

"The transaction will improve the company's cash flow and liquidity. We also expect the company will continue to improve profitability from restructuring initiatives and start generating better free cash flow over the next 12-18 months," Ben Nelson, Moody's vice president and lead analyst for Omnova said in a news release.

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