Moody's assigns W.R. Grace Holdings B2

Moody's Investors Service said it assigned a B2 corporate family rating to W.R. Grace Holdings LLC, a B2-PD probability of default rating, B1 ratings to the planned $1.45 billion first-lien senior secured term loan due 2028 and $450 million senior secured revolving credit facility maturing 2026 and B3 ratings to the outstanding senior unsecured notes due 2024 and 2027.

Grace is offering to exchange the senior unsecured notes for new secured notes with the same coupon and maturity date.

Term loan proceeds, an equity contribution of about $3.6 billion, $1.05 billion of senior unsecured notes, $270 million preferred equity roll-over and additional unsecured financing will be contributed to the $7 billion acquisition of W. R. Grace & Co. by Standard Industries Holdings Inc.

W.R. Grace & Co.-Conn.’s ratings, including the Ba3 CFR, Ba3-PD and all associated instrument ratings will be withdrawn upon closing of the transaction and repayment of the debt. The acquisition involves only a change in ownership; however, W.R. Grace & Co. will continue to operate.

"The assigned ratings reflect the additional debt to finance the acquisition by Standard Industries and more aggressive financial policy under the new ownership," said Domenick R. Fumai, a Moody's vice president and lead analyst for W.R. Grace Holdings LLC, in a press release.

The outlook is stable.

© 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.