Moody’s rates ASP Unifrax loans B3, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating to ASP Unifrax Holding, Inc.

The agency also assigned B3 ratings to the company’s proposed $125 million senior secured first-lien revolving credit facility, $900 million senior secured first-lien term loans, including both dollar and euro tranches, as well as a Caa2 rating to its proposed $300 million senior secured second-lien term loan.

Proceeds from the term loans will be used to repay existing term loans, to fund the acquisition of Unifrax by Clearlake Capital Group from American Securities and for general corporate purposes.

The outlook is stable.

“Unifrax's B3 corporate family rating reflects its high debt leverage following the buyout by Clearlake Capital, elevated capital expenditures in the next few years to expand production facilities, as well as high exposure to the cyclical automotive and industrial end markets,” Jiming Zou, Moody's vice president and senior analyst, said in a news release.

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