Moody's rates TPC s add-on B3

Moody's Investors Service said it assigned a B3 (LGD4) rating to TPC Group Inc.'s proposed $50 million add-on to its 8¾% senior secured notes due 2020. TPC's B2 corporate family rating and other ratings remain unchanged, and the outlook remains negative.

The proceeds of the proposed notes will be used to repay outstanding revolver borrowings.

The agency said TPC Group's B2 corporate family rating reflects its high leverage, narrow commodity-based product line, the shortage of crude C4s in the United States, which can limit volumes during periods of high demand, and a concentrated operational and geographical profile. The ratio of debt to EBITDA stood at 6.6 times for the 12 months ended June 30.

In support of the rating, the company enjoys large market shares within its low-volume commodity product lines where it is either the largest or second largest supplier, Moody’s said.

© 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.