Moody’s rates NIC loan Caa2

Moody’s Investors Service said it gave a Caa2 rating to NIC Acquisition Corp.'s (Innovative Chemical Products Group) new $130 million tranche of its backed senior secured first-lien term loan and withdrew the Caa2 rating on its $100 million backed senior secured first-lien revolver, which has been repaid and terminated.

"The termination of revolver eliminates financial maintenance covenants from the credit facilities, while the new term loan provides a substantial amount of liquidity and time to improve the company's financial performance," stated John Rogers, a senior vice president at Moody's, and lead analyst on ICP, in a press release.

The term loan proceeds will be held as cash on the balance sheet to provide liquidity, while the company undertakes cost improvement programs to raise profitability.

The outlook is stable.

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