Moody’s rates W.R. Grace facilities Ba1

Moody's Investors Service said it assigned Ba1 ratings to W.R. Grace & Co.-Conn.'s new $1.3 billion senior secured credit facilities comprised of a new $400 million first-lien senior secured revolving credit facility and $900 million first-lien term loan facility.

Proceeds will be used to refinance existing term debt, fund the company’s acquisition of Albermarle's polyolefin catalyst business for roughly $420 million and pay transaction-related fees and expenses.

All other ratings, including the Ba2 corporate family rating and SGL-2 speculative grade liquidity rating, are unchanged.

The ratings on the existing term debt are expected to be withdrawn following full repayment after the completion of the proposed transaction.

"The acquisition will stretch credit metrics temporarily, but the industrial logic is sound and Grace will have the ability to reduce leverage over the next 12-18 months," Ben Nelson, Moody's vice president, senior credit officer and lead analyst for W.R. Grace, said in a news release.

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