Moody's rates Entegris loan Baa3

Moody's Investors Service said it assigned a Baa3 rating to Entegris Inc.'s new senior secured term loan and senior secured revolver at Baa3 and upgraded Entegris's corporate family rating to Ba1 from Ba2, probability of default rating to Ba1-PD from Ba2-PD and senior unsecured rating to Ba2 from Ba3.

Moody's also said it affirmed the SGL-1 speculative grade liquidity rating.

The outlook is stable.

The upgrades follow Entegris's improved financial profile and an expectation that the improvement in the company's EBITDA margin to the upper 20 percent level will be sustained, Moody's said.

The outlook is stable.

The proceeds will be used to refinance the senior secured term loan due April 2021 with excess proceeds retained as cash for general corporate purposes, Moody's said.

The new revolver will replace the company's $75 million ABL revolver due in March 2023.

The rating on the existing term loan will be withdrawn upon repayment.

The ratings reflect Entegris's niche position in certain market segments, such as wafer handling equipment and filters, Moody's said.

The rating also consider the company's consistent free cash flow generation due to modest capital expenditure requirements and the longer life cycle of many of Entegris's products, the agency said.

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