Moody's rates TCO Funding loan B2

Moody's Investors Service said it assigned ratings of B2 to both the TCO Funding Corp.'s senior secured credit facilities and to the corporate family rating.

The ratings assigned include the $25 million revolving credit facilities at B2, the $147 million first-lien term loan due 2012 at B2 and the corporate family rating at B2.

The outlook is stable.

Proceeds from this debt issuance, along with $84 million in second-lien notes (not rated by Moody's) will be used to fund the acquisition of The Tensar Corp.

The outlook is stable.

The ratings are constrained by the initial high debt leverage and Tensar's significant customer concentration, Moody's said. The ratings benefit from Tensar's current product offerings given expected increases in federal spending.

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