Moody’s ups Associated Asphalt, rates loan B3

Moody's Investors Service said it upgraded Associated Asphalt Partners, LLC’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

Concurrently, the agency assigned a B3 rating to the proposed $325 million senior secured term loan B. Road Holdings III, LLC is a co-borrower of the instrument.

The outlook is stable.

In October 2016, an affiliate of ArcLight Energy Partners Fund VI, LP acquired Associated Asphalt for about $467 million, which included adjustments for working capital. In February, Associated Asphalt acquired its largest competitor, Axeon Marketing LLC, for roughly $193 million, which also included adjustments for working capital.

Proceeds from the senior secured term loan, along with ArcLight Energy and management equity, will be used to repay Associated Asphalt's outstanding senior unsecured notes due 2018, notes due to ArcLight Energy, and fees and expenses relating to the term loan transaction.

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