Moody’s rates GCP loan Ba2, notes B1

Moody's Investors Service said it assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to GCP Applied Technologies Inc.

GCP is the public company expected to be formed, early this year, by a spin-off of W.R. Grace & Co.'s construction products segment and its Darex Packaging Technologies business. The agency rates W.R. Grace's main operating subsidiary W.R. Grace & Co.-Conn. (Grace, Ba2 stable).

Moody's also assigned a Ba2 rating to GCP's proposed first-lien senior secured credit facility; and a B1 rating to their proposed $525 million in senior unsecured notes due 2023.

The Ba2 rated first-lien senior secured credit facility is to be comprised of a $250 million (undrawn) revolving credit facility due in 2021 and a $275 million term loan due in 2022.

Proceeds from the term loan and notes will largely be used to fund a $750 million dividend distribution to Grace.

Moody's also assigned a speculative grade liquidity rating of SGL-2, meaning GCP's liquidity position for the next 12 to 18 months is good.

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