Moody's rates Arr-Maz loans B2, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating to Arr-Maz Custom Chemicals, Inc., B2 ratings to its $15 million senior secured first-lien revolving credit facility due 2012 and $125 million senior secured first-lien term loan due 2012 and a Caa1 rating to its $52.5 million senior secured second-lien term loan due 2013.

The ratings were assigned in connection with the financing of the recent purchase of Arr-Maz by funds managed by GSO Capital Partners and refinancing of existing Arr-Maz debt.

A stable outlook was also assigned.

The ratings reflect Arr-Maz's significant debt balances, modest size, narrow product line with exposure to mature industries, customer concentration and a concentrated operational and geographic profile.

However, there has been some consolidation and rationalization of phosphate mines and processing plants in Florida, Arr-Maz's largest market for process chemicals and additives, which may negatively impact the company's profitability, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.