Moody's assigns B2 to Archroma loans

Moody's Investors Service said it assigned B2 ratings to Archroma Finance Sarl’s planned amend and extend transaction which includes new guaranteed senior secured first-lien term loans B, with dollar and euro tranches, estimated to be $850 million equivalent maturing in June 2027 and a new $160 million guaranteed senior secured first-lien revolving credit facility maturing in March 2027. The issuer is a guaranteed subsidiary of Archroma Holdings Sarl.

The B2 ratings under Archroma Finance Sarl are in line with Archroma's B2 corporate family and probability of default ratings. “This is because the proposed instruments will represent the vast majority of debt in Archroma's restricted group, ranking pari passu with Archroma's trade payables in Moody's loss given default waterfall,” the agency said in a press release.

The proceeds will refinance the outstanding guaranteed senior secured term loans and revolver at Archroma Finance. The ratings of these legacy instruments will be withdrawn upon their full repayment.

The outlook on both Archroma and Archroma Finance is positive.

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