Moody's: Tower Automotive loan B1

Moody's Investors Service said it assigned a B1 rating to Tower Automotive Holdings USA, LLC's new $275 million senior secured term loan. Tower Automotive is a wholly owned indirect subsidiary of Tower International, Inc.

In a related action, Moody's affirmed Tower Automotive's corporate family and probability of default ratings, at B2 and B2-PD, respectively.

The speculative grade liquidity rating is SGL-3.

The outlook is stable.

The proceeds from the new senior secured term loan are expected to be used to fund Tower International's recently announced partial tender offer and subsequent redemption totaling $215.6 million of Tower Automotive's outstanding 10 5/8% senior secured notes due 2017, reduce $25 million of foreign debt and pay related premiums and transaction expenses.

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