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Moody's may lift EaglePicher
Moody's Investors Service said it placed the debt ratings of EaglePicher Corp. on review for possible upgrade following the company's announcement that it is selling its EaglePicher Technologies division, one of its three primary operating segments.
The review will focus on the use of proceeds, the resulting capital structure and its projected sustainability, and the company's projected credit metrics post the transaction, the agency said.
According to Moody's, EaglePicher announced that it has signed a deal to sell its EaglePicher Technologies LLC group to OM Group for nearly $172 million. It was also announced that OM Group will assume certain pension and other retirement benefit obligations.
Moody's anticipates that the company will apply the proceeds to pay down debt, per the terms of its credit agreement, which should reduce overall leverage and favorably affect credit metrics.
Affected ratings include the company's probability of default rating at B2, corporate family rating at B2 and senior secured bank credit facility currently at a range of Caa1 to B1.
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