Moody's rates Supresta loans B1

Moody's Investors Service said it assigned a B1 senior implied rating to Supresta LLC (formerly Ripplewood Phosphorous LLC). The outlook is stable.

In addition, Moody's assigned B1 ratings to the company's $25 million senior secured revolving credit facility and $140 million secured term loan.

In July of 2004, Ripplewood acquired this business from Akzo Nobel NV for $276 million utilizing proceeds from the term loan, $60 million of subordinated mezzanine notes (not rated) and roughly $88 million of equity capital from an affiliate of Ripplewood Holdings.

Moody's said the ratings take into account Supresta's elevated leverage with pro forma debt to EBITDA of over 5x for the last 12 months ended Sept. 30, negative tangible net worth, small size and limited product diversity, the cyclical nature of the business, meaningful customer concentration and exposure to increasing raw material costs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.