Fitch rates W. R. Grace Holdings B+

Fitch Ratings said it assigned a B+ long-term issuer default rating to W. R. Grace Holdings LLC and a BB+/RR1 to the company's secured debt, including the company's announced $1.45 billion term loan due 2028 and the notes resulting from a bond exchange that will replace $300 million in 2024 unsecured notes and $750 million in 2027 unsecured notes with secured notes of the same size and maturity.

The proceeds will be used to fund the company's $7 billion acquisition by Standard Industries Holdings, with the remainder of the consideration to be paid in equity contributions and additional debt.

“The B+ rating level captures the company's strong FCF generation, specialized product portfolio and modest cyclicality, offset by a sizable but falling debt burden,” Fitch said in a press release.

Fitch's ratings on W. R. Grace & Co. and its subsidiaries will be withdrawn when the full funding structure is in place and its acquisition closes.

The outlook is stable.

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