Moody's rates Ainsworth notes B1

Moody's Investors Service said it placed the ratings of Ainsworth Lumber Co. Ltd. under review for possible upgrade. The company's senior implied rating is B3 as is the rating for its senior secured notes. Concurrently, Moody's assigned a prospective B1 rating to Ainsworth's proposed $200 million issue of senior unsecured notes due 2014.

Proceeds of the note issue together with cash on hand will be used to refinance the company's outstanding notes by way of a tender offer ($184.6 million and $89.1 million senior secured notes both due July 15, 2007).

Moody's said the possible upgrade and the prospective B1 rating for the new note issue are based on Ainsworth's highly leveraged capital structure and the company's relative lack of product and geographic diversity and lack of size in comparison to key competitors in the very volatile oriented strandboard market.

Moody's said its ratings actions also reflect Ainsworth's good quality assets, competitive cost position and very strong financial results resulting from elevated pricing for OSB.

© 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.