Moody's affirms Metaldyne

Moody's Investors Service said it affirmed the B1 corporate family and probability-of-default ratings of Metaldyne, LLC following the company's upsizing of its proposed senior secured term loan facility to $250 million from $225 million.

The agency also affirmed the B1 rating (LGD3, 44%) of the resized term loan.

The outlook is stable.

Proceeds will be used to fund a correspondingly higher distribution to the company's shareholders (including the company's lead sponsors, Carlyle Group and Solus Alternative Asset Management LP).

Moody's said that Metaldyne's leverage will increase modestly as a result of the term loan upsizing but that, due to increased market demand, the interest rate on the term loan will be lower than anticipated. Consequently, key debt service metrics will largely remain in line with our earlier expectations, and the company's overall risk profile remains unchanged.

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