S&P rates Tata Chemicals loan BB

S&P said it assigned a BB rating with a recovery rating of 1 to Tata Chemicals North America Inc.’s proposed term loan B and $25 million revolving credit facility. Concurrently, the BB issue-level rating and 1 recovery rating on the company's $315 million term loan and $25 million revolver are unchanged. Once the transaction closes and this debt is repaid, the agency will withdraw these ratings.

Tata Chemicals is refinancing its capital structure to replace its $225 million term loan B due in August and repay the $175 million acquisition-related bridge loan. It plans to issue a new seven-year, $380 million term loan B and $25 million revolving credit facility. The bridge loan was issued in December by the company's parent as it acquired Owens-Illinois' remaining 25% stake in Tata Chemicals (Soda Ash) Partners Holding for $195 million. As a result of the transaction, S&P Global Ratings-adjusted FFO to debt is expected to remain between 12% and 20%.

The outlook is stable.

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