Moody's assigns B1 to ASP GT

Moody's Investors Service assigned first time ratings to ASP GT Acquisition Corp., a specialty chemical manufacturer, for its acquisition of GenTek Inc.

The proposed outlook is stable.

On Sept. 28 Moody's placed the ratings of GenTek, including its B1 corporate family rating, on review for possible downgrade following the announcement that it entered into a definitive agreement to be acquired by ASP, a wholly owned subsidiary of investment funds managed by American Securities LLC, a private equity firm.

Under the terms of the merger agreement, ASP began a tender offer to purchase for cash all of the outstanding shares of GenTek common stock at a price of $38.00 per share. The transaction is valued at $673 million, consisting of equity value of about $411 million plus the assumption of net debt and similar liabilities of about $262 million.

Specifically, Moody's rates GenTek Holding's $30 million senior secured revolver due 2013 at Ba3 (LGD3, 41%) and its $300 million senior secured term loan B due 2014 at Ba3 (LGD3, 41%).

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