Moody’s assigns Styrolution loan B2

Moody's Investors Service said it assigned a provisional B2 rating to the proposed €1.05 billion equivalent term loan of Styrolution Group GmbH and its subsidiary, Styrolution US Holding LLC who is a co-borrower under the facility.

The agency also affirmed the corporate family rating of Styrolution at B2, the probability of default rating at B2-PD and the instrument ratings on the €480 million of senior secured guaranteed notes due 2016 at B2.

The outlooks are stable.

Moody's expects that Styrolution will use the proceeds of the proposed new term loan, along with additional second-lien debt and cash on hand to (a) redeem the outstanding secured notes maturing in 2016 (rated B2); (b) on-lend to Ineos Styrolution Holding GmbH to fund its €1.1 billion purchase of BASF SE's (A1 stable) 50% stake in Styrolution Holding GmbH, an intermediate parent company of Styrolution; and (c) pay fees and expenses.

The company has issued a conditional redemption notice for the outstanding notes maturing in 2016. If its refinancing condition is met, the notes will be redeemed at 102.859 on or before Dec. 2.

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