Moody’s rates Cyanco, facilities

Moody's Investors Service said it assigned a B2 corporate family rating to Cyanco Intermediate 2 Corp. and a B2 to its proposed $380 million senior secured first-lien term loan due 2025 and $50 million senior secured revolving credit facility due 2023, as well as a Caa1 rating to its proposed $100 million senior secured second-lien term loan due 2026.

Proceeds from the term loans will be used to repay existing term loans, fund the acquisition of Cyanco by Cerberus Capital Management from Oaktree Capital Management and for general corporate purposes.

The outlook is stable.

"Cyanco's B2 CFR reflects our expectation that the company will maintain relatively high profit margins and generate positive free cash flow for debt reduction over time due to the expectation of increased demand for sodium cyanide to process lower quality ores," Moody's vice president, senior analyst Jiming Zou said in a news release.

© 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.