Moody's rates Oxbow loans Ba3, B2

Moody's Investors Service said it changed the outlook of Oxbow Carbon LLC to negative from stable and affirmed the company's Ba3 corporate family rating and Ba3-PD probability of default rating.

At the same time, Moody's assigned ratings of Ba3 and B2 to the company's proposed senior secured first-lien term loan B and second-lien term loan B, respectively.

The Ba3 ratings of the senior secured term loan A, term loan B and term loan B-1 and revolving credit facility were also affirmed.

Oxbow intends to use the net proceeds of the new term loans to repay outstanding balances under its existing senior secured term loan B due May 2014 (2014 term loan B) and senior secured term loan B1 due May 2016 (2016 term loan B1) and reduce outstandings under term loan A. The ratings on the 2014 term loan B and 2016 term loan B1 will be withdrawn once the instruments have been fully redeemed.

Fitch said the Ba3 rating on the first-lien secured revolver and term loans, which is the same as the corporate family rating, reflects the preponderance of this debt within the overall capital structure. The B2 rating on the second-lien term loan B reflects its weaker position in the capital structure.

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