Moody’s ups Ainsworth notes, rates Norbord notes Ba2

Moody's Investors Service said it assigned a Ba2 (LGD3) rating to Norbord Inc.'s proposed $315 million senior secured notes due 2023.

The Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba2 rating on the company's existing secured bonds were affirmed.

At the same time, the agency withdrew the review on Ainsworth Lumber Co. Ltd.’s B1 corporate family rating, B1-PD probability of default rating and the SGL-2 liquidity rating, as Ainsworth is now part of Norbord's corporate family rating.

Ainsworth's 7½% senior secured notes due 2017 were upgraded to Ba2 from B1, the same as Norbord's senior secured rating.

Norbord's outlook remains stable and the speculative grade liquidity rating remains unchanged at SGL-1. This action resolves Ainsworth's review for upgrade initiated on Dec. 8.

The proposed notes will be secured and will rank equally with Norbord's existing secured notes due 2017 and 2020.

Proceeds plus cash on hand will be used to complete a tender offer for Ainsworth's 7½% senior secured notes due 2017 in connection with the all-share purchase of Ainsworth that closed on March 31, 2015.

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