Moody's assigns Draslovka, loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Draslovka Holding Alpha as. Concurrently, Moody's gave B2 instrument ratings to the planned $335 million guaranteed senior secured term loan and $30 million guaranteed senior secured revolving credit facility. Both loans will be borrowed by Manchester Acquisition Sub LLC, a subsidiary of Draslovka.

“Draslovka's B2 rating reflects the company's small scale and narrow business profile, with limited diversification in terms of product, customer, end market, and manufacturing footprint, which is balanced by a strong market position and a starting leverage in line with a B2 rating. In addition, the assigned rating reflects Moody's expectations of moderately negative FCF generation in 2022,” the agency said in a press release.

The company will use the procceds to finance the acquisition of Chemours Co.'s mining solutions business, refinance debt to pay transaction fees and to fund $6 million of cash on balance sheet.

The outlook is stable.

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