Moody’s ups Axalta loans, notes; rates notes B1

Moody's Investors Service said it assigned B1 ratings to the new senior unsecured euro notes due 2025 at Axalta Coating Systems Dutch Holding B BV, and affirmed its corporate family rating at Ba3.

At the same time, the agency upgraded the senior secured first-lien revolver and term loans of Axalta and co-borrower Axalta Coating Systems U.S. Holdings Inc., to Ba1 from Ba2 and the senior unsecured notes of these entities and Axalta Coating Systems, LLC to B1 from B2.

Proceeds from the new notes are expected to be used pay off or reduce outstanding debt of the existing senior secured euro notes and the euro term loan.

The existing ratings on the secured euro notes and term loan will be withdrawn once the debt is repaid.

"The upgrade of the secured and unsecured tranches reflect the significant decrease in secured debt in Axalta's capital structure, leaving the USD term loan and possibly a small portion of the Euro term loan as the remaining secured obligations on the company's balance sheet," Moody’s vice president, senior credit officer Joseph Princiotta said in a news release.

"The new debt issuance is expected to be virtually leverage neutral while allowing for lower interest expense and an extended maturity profile."

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