Moody's assigns Baa3 to RPM notes

Moody's Investors Service said it assigned a Baa3 rating to RPM International Inc.'s new $300 million 10-year note issuance.

"The financing reduces cost of borrowings as the new issuance is expected to have a lower coupon than the existing notes," said Joseph Princiotta, a Moody’s senior vice president and senior analyst covering RPM, in a press release.

Proceeds are expected to be used to repay a portion of borrowings under the revolving credit facility and for general corporate purposes, and to improve the availability under the credit facilities to help fund the $300 million of notes maturing in November 2022.

"The transaction is expected to slightly increase gross debt until the maturing notes are repaid. However, net debt will be unchanged in the interim. The refinancing extends the company's maturity profile–the company's next note maturity is not until 2027," Princiotta added.

The outlook is stable.

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