Moody's rates Orion notes Caa1

Moody's Investors Service said it assigned a definitive Caa1 rating with a loss given default assessment of LGD 5 - 89%, to the $425 million of payment-in-kind toggle notes issued by issued by Orion Engineered Carbons Finance & Co SCA, which is a special purpose entity owned and guaranteed by Kinove Luxembourg Holdings 1 Sarl, the ultimate parent of Orion Engineered Carbons Holdings GmbH.

The B2 corporate family rating and B2-PD probability of default rating assigned at the Orion level are unchanged, as well as the Ba2 rating of its super senior revolving credit facility and the B2 rating of its senior secured guaranteed notes.

The outlook is negative.

"The Caa1 rating on the new notes reflects the subordinated position of the new instrument relative to the existing senior secured facilities and notes borrowed/issued by Orion, as well as unsecured trade obligations of the operating companies," Moody's vice president, senior analyst and lead analyst for Orion Gianmarco Migliavacca said in a news release.

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