Moody’s ups Entegris, rates notes Ba3

Moody's Investors Service said it rated Entegris Inc.'s new senior unsecured notes at Ba3 and upgraded its corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD, senior secured rating to Baa3 from Ba1 and senior unsecured rating to Ba3 from B1.

The SGL-1 speculative grade liquidity rating was affirmed.

The outlook is stable.

Moody’s said the upgrade follows Entegris' repayment of $100 million of senior secured debt during 12 months ended July 1, 2017, its commitment to further debt reduction over the next year, and the agency’s expectation that the improvement in the company's EBITDA margin to the mid to upper 20% level (Moody's adjusted) will be sustained.

Ratings on the existing senior unsecured notes due 2022 will be withdrawn upon repayment.

Entegris intends to use the proceeds from the new notes to redeem all of the $360 million of outstanding existing notes, with excess proceeds retained as cash for general corporate purposes.

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