Moody's rates SGL Carbon notes B2

Moody's Investors Service said it assigned a B2 rating to SGL Carbon SE's proposed senior secured notes.

SGL's B3 corporate family rating and B3-PD probability of default rating are unchanged.

The outlook is stable.

The note offering is part of a transaction, which also includes a new €175 million senior secured revolving credit facility agreement due in January 2023, replacing the €50 million syndicated credit facility, which was due to mature at the end of 2019, Moody's said.

The proceeds from the proposed €250 million senior secured notes issuance will be used to pre-fund the redemption of the company's €167 million convertible bonds due 2020, as well as to repay a $99 million loan due in December 2020, the agency said.

The ratings are underpinned by the material de-leveraging achieved during the past two years, as the group successfully completed the strategic realignment of its business portfolio in the fourth quarter of 2017, Moody's said.

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