Moody's rates Ta Chen loan B3

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Ta Chen International, Inc.

Moody's also said it assigned a B3 rating to the proposed $250 million senior secured term loan B.

The proceeds from the loan, along with borrowings on its asset-based lending facility will be used to fund the purchase of a common alloy aluminum rolling mill for $300 million.

The outlook is stable.

The ratings reflect the company's strong market position, positive earnings momentum and moderate financial leverage, Moody's said.

The agency also considers the volatility of the operating performance of domestic metals distributors and the uncertainties related to ramping up a rolling mill that was idled for years, the agency said.

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