Moody's rates Oxbox loans B1, Caa1

Moody's Investors Service said it assigned ratings to the new secured credit facilities proposed by Oxbow Carbon LLC, including B1 rating to the $325 million revolver, $100 million term loan A and $575 million first-lien term loan B, and Caa1 rating to the $175 million second-lien term loan B.

The existing corporate family rating of B2 and probability of default rating of B2-PD are affirmed.

Moody's also said it changed the outlook to positive from stable.

The proceeds will be used to refinance all existing debt, the agency said.

Moody's also said it will withdraw the existing debt ratings upon closing of the transaction.

The outlook revision reflects expected continued improvement in the company's credit metrics on the back of improving industry trends, particularly in the calcining business, the agency explained.

The company's debt-to-EBITDA ratio has declined to 4.8x as of Sept. 30 as compared to 5.6x last year, Moody's said.

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