Moody’s lifts Orion Engineered, rates loans B1

Moody's Investors Service said it upgraded Orion Engineered Carbons Holdings GmbH's corporate family rating by one notch to B1 and probability of default rating to B1-PD.

It will subsequently withdraw these ratings due to the recent corporate reorganization of the group following the completed IPO, with Orion Engineered Carbons SA (OEC SA) established as the new listed parent company and reporting entity of the Orion group, owning 100% of Orion Engineered Carbons Holdings GmbH.

The agency concurrently upgraded by one notch the rating of the outstanding senior secured notes to B1, existing super senior revolving credit facility to Ba1 and outstanding PIK toggle notes to B3. Moody's will subsequently withdraw the ratings on all these debt instruments, as they were redeemed in full as part of the IPO and refinancing transaction recently completed.

In addition, Moody's assigned a corporate family rating of B1 and a probability of default rating of B2-PD with a positive outlook to OEC SA, as well as a definitive B1 rating/positive outlook to the €665 million equivalent term loan facility (and the new €115 million multicurrency revolving credit facility borrowed by Orion Engineered Carbons GmbH, an indirect subsidiary of OEC SA.

Moody’s said the B1 corporate family rating reflects the new listed status of the Orion group, which translates into a more robust governance structure, and improved financial profile following the completion of the IPO and refinancing transaction, which has led to a material reduction in the group's financial indebtedness and future financial charges.

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