Moody’s ups Atotech, rates loan B1

Moody’s Investors Service said it upgraded Atotech UK Topco Ltd.’s corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD.

Concurrently, the agency assigned a B1 rating to the new backed senior secured term loans of $1.35 billion and €200 million due in 2028 and the new $250 million backed senior secured revolving credit facility due in 2026, all co-borrowed by Alpha 3 BV, Alpha US BidCo, Inc., Atotech BV and other entities.

“Today’s ratings action reflects Atotech’s successful initial public offering (IPO) of 29.3 million of its common shares at $17 per share. The Carlyle Group, which refrained from selling additional common shares as part of the IPO, continues to be the majority shareholder holding approximately 81% of Atotech common shares,” Moody’s said in a press release.

Atotech used the proceeds of around $473 million, about $71 million of balance sheet cash and drawdown around $100 million under the previous $250 million revolver to redeem the $219 million PIK toggle notes and the outstanding $425 million senior unsecured notes, the agency noted.

The company will use the new loan proceeds to refinance its $1.44 billion term loan and $250 million revolver.

The outlook is stable. These actions conclude the review for upgrade started on Jan. 27, Moody’s said.

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