Moody's assigns B2 to Aruba add-on

Moody's Investors Service said it assigned a B2 rating to Aruba Investments Holdings, LLC's (Angus Chemical Co.) planned $125 million non-fungible term loan add-on.

The B3 corporate family rating, the B3-PD probability of default rating and the B2 rating on the outstanding senior secured first-lien credit facilities remains unchanged. The Caa1 rating on the second-lien term loan is also unchanged as is the Caa2 rating on the $200 million of senior PIK toggle notes due 2026 issued by Kobe US Midco 2, Inc.

The proceeds will be used to fund a strategic tuck-in acquisition that expands the company's growing life sciences business.

"The incremental debt on the balance sheet only moderately increases leverage on a pro forma basis, though is more than offset by a strategic acquisition in an attractive industry and improved liquidity," said Domenick R. Fumai, a Moody’s vice president and lead analyst for Aruba Investments, in a press release.

The outlook is stable.

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