Moody's assigns Rinchem, loans B3

Moody's Investors Service said it assigned Rinchem Co., LLC a B3 corporate family rating, a B3-PD probability of default rating and a B3 rating to the company's proposed senior secured first-lien credit facility including a $35 million revolving credit facility and a $300 million term loan.

"Rinchem's B3 CFR reflects its small business scale, concentrated customers base, elevated debt leverage and significant capital spending that will limit its financial flexibility in the next two to three years. However, the strong demand from semiconductor sector will support its long term growth and strengthen its earnings over time. The company can potentially improve its rating should it continue to grow its business scale, diversity and earnings by investing in new capacity to cater for the growing chips production without weakening its credit metrics," said Jiming Zou, Moody's lead analyst on Rinchem, in a press release.

Term loan proceeds will be used, together with equity investment, to fund the acquisition of Rinchem by Stonepeak.

The outlook is stable.

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