Moody's rates Entegris loan Baa3

Moody's Investors Service said it rated Entegris, Inc.'s new senior secured term loan Baa3. Entegris' other ratings, including its Ba2 senior unsecured rating, remain under review for downgrade. The speculative grade liquidity rating remains unchanged at SGL-1.

On Dec. 16, Moody's placed Entegris' ratings under review for downgrade following the company's announcement it plans to acquire CMC Materials, Inc. Entegris will pay about $5.8 billion for the CMC equity, excluding transaction fees. The acquisition is expected to close in the second half of calendar year 2022.

Entegris plans to use the loan, combined with new equity issued directly to CMC selling shareholders and other secured and unsecured debt, to fund the deal.

“The rating of the new term loan assumes that secured debt will comprise about two-thirds of the pro forma debt capital structure. To the extent the debt capital structure has a greater mix of secured debt, the rating on the new term loan could be downgraded,” Moody’s said in a press release.

© 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.