Moody's assigns GEON B2

Moody's Investors Service said it assigned GEON Performance Solutions, LLC a B2 corporate family rating, a B2-PD probability of default rating and a B2 rating to the company's planned $600 million seven-year senior secured term loan. Moody's also assigned a B2 rating to the $60 million senior secured revolving credit facility.

Term loan proceeds, along with $60 million in balance sheet cash, will be used to refinance $477 million of debt, issue a $160 million dividend and pay related fees and expenses.

"GEON's financial performance has rebounded nicely from the pandemic as demand for PVC in key end markets has been strong; however, the sizable amount of debt and dividend are offsetting factors to the credit profile," said Domenick R. Fumai, a Moody's vice president and lead analyst for GEON, in a press release.

The agency said it sees GEON’s debt/EBITDA, including Moody’s standard adjustments, to decline to about 4x in fiscal year 2021 from mid-5x at the end of last year.

The outlook is stable.

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