Moody’s assigns Baa3 to RPM notes

Moody’s Investors Service said it assigned a Baa3 rating to RPM International Inc.'s new $250 million senior unsecured notes.

The outlook is stable.

Proceeds are expected to be used to reduce the outstanding balance on the company's bank revolver, which was drawn to fund the first payment ($450 million) to the 524(g) asbestos trust that was established earlier this year as part of the bankruptcy reorganization plan of RPM's subsidiaries.

Moody’s said the Baa3 ratings are supported by RPM's diverse portfolio of products, many of which enjoy leading market share positions in various consumer and industrial end-markets. Most of the company’s products can be characterized as specialty coatings and sealants with niche applications in corrosion control, waterproofing, sealing, flooring and roofing.

The Baa3 rating is currently stressed due to weakened metrics following the step up in debt incurred to fund the first asbestos trust payment; Moody's anticipates that metrics will improve quickly as debt is paid down with free cash flow from operations, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.