Moody’s assigns Ashland notes, facilities Ba1

Moody’s Investors Service said it assigned Ba1 ratings to Ashland LLC’s and Ashland Services BV’s proposed $600 million revolving credit facility, $250 million delayed draw term loan A due 2025 and €500 million notes due 2028.

Ashland Services will be the borrower of the new senior notes, which will be guaranteed by Ashland Global Holdings Inc. and Ashland LLC. Ashland Services BV and Ashland LLC will be co-borrowers of the new revolver and Ashland LLC will be the borrower of the new delayed draw term loan (the credit facilities), both of which will be guaranteed by Ashland Global Holdings Inc., Ashland Chemco Inc., and Ashland LLC.

Proceeds will be used for repaying debt, tender premiums and transaction fees; increasing total debt and balance sheet leverage slightly. The new credit facilities are unsecured, which marks the completion of the anticipated shift to an unsecured capital structure. The outlook is stable.

“The financing takes advantage of favorable debt capital markets and will reduce financing costs and annual interest expense,” said Joseph Princiotta, a Moody’s senior vice president, in a press release. “The financing is also intended to reduce the 2022 senior notes tower, which would improve the debt maturity profile.”

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