Moody's rates Thompson Creek notes B1

Moody's Investors Service said it affirmed Thompson Creek Metals Co. Inc.'s Caa1 corporate family and probability of default ratings, Caa2 senior unsecured notes ratings, Caa2 rating of the debt component of tangible common equity units.

In addition, Moody's assigned a B1 rating to the company's proposed $350 million senior secured notes.

The speculative grade liquidity rating remains unchanged at SGL-4, but Moody's said it expects to raise it to SGL-3 once the proposed financing closes.

The outlook remains stable.

"Completion of the debt transaction will strengthen Thompson Creek's liquidity, which is crucial as it addresses molybdenum production issues and funds the construction of the Mt. Milligan copper-gold mine," Moody's vice president and senior credit officer Darren Kirk said in a news release.

"Notwithstanding improved liquidity, leverage will remain elevated and free cash flow will be significantly negative over the rating horizon."

© 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.