Moody’s applies Ba1 to Axalta loans

Moody's Investors Service said it assigned Ba1 ratings to the $450 million incremental senior secured first-lien term loans of Axalta Coating Systems Ltd.'s wholly owned subsidiaries – Axalta Coating Systems Dutch Holding B BV, and the co-borrower, Axalta Coating Systems U.S. Holdings Inc.

Proceeds will be used to finance the acquisition of assets related to Valspar's North American Industrial Wood Coatings business for $420 million and to pay transaction-related expenses. The transaction, which is subject to the closing of Valspar Corp. and Sherwin-Williams Co. merger as well as customary regulatory approvals, is expected to close mid-year. Valspar is required to divest the assets to satisfy regulators related to the pending acquisition of Valspar by Sherwin-Williams.

"The acquisition is a good strategic fit with Axalta's Performance Coatings segment and is consistent with Axalta's competencies, technology and geographic presence," Moody’s vice president, senior credit officer Joseph Princiotta said in a news release.

"The acquisition, which does not overly stress the balance sheet, also facilitates diversification away from the auto OEM market and supports growth in Axalta's industrial coatings business."

© 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.