Moody’s rates AOC B2, loans B1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to LSF11 A5 HoldCo LLC, which does business as AOC.

Concurrently, Moody's assigned a B1 rating to the proposed $1.26 billion senior secured term loan and $200 million senior secured revolving credit facility.

The outlook is stable.

The proceeds from the term loan, a $40 million draw on the revolver and $350 million of other debt, along with $955 million of equity will be applied towards the purchase of AOC by Lone Star Funds to repay existing debt, transaction related fees and expenses.

"The assigned ratings reflect the additional debt to finance the acquisition by Lone Star Funds and weaker credit metrics relative to that under its previous owner, which is partially mitigated by AOC's top industry position in the global composite resins market benefitting from tailwinds in a number of end markets," Domenick R. Fumai, Moody's vice president and lead analyst for AOC, said in a news release.

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