Moody's rates Darling loan Ba1

Moody's Investors Service said it assigned a Ba1 (LGD 2) rating to Darling Ingredients Inc.'s proposed $525 million senior secured first-lien term loan B credit facility due 2024.

There are no changes to Darling's existing ratings, Moody's said.

The outlook is stable.

The proceeds from the new term loan B will be used to fully repay the existing term loan B credit facility, which matures in January 2021, Moody's said.

The new term loan B facility will mature in 2024, the agency added.

The ratings on the company's existing term loan B facility will be withdrawn at closing, Moody's noted.

The refinancing is modestly credit positive because it will extend the maturity profile and reduce cash interest costs, the agency said.

The Ba1 rating is one notch higher than the Ba2 corporate family rating, reflecting its priority position to a material amount of unsecured debt, Moody's said.

The ratings reflect the company's moderately high financial leverage, some exposure to finished product price swings and exogenous raw material supply risk, the agency said.

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