Moody's assigns Element B2, loans B1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to EM Midco 2 Ltd. (Element). Concurrently, the agency gave B1 ratings to the new $1.825 billion equivalent backed senior secured first-lien term loan due 2029, the new $200 million backed senior secured first-lien revolving credit facility and the new $200 million backed senior secured first-lien acquisition capex facility due in 2028, all to be issued by EM Bidco Ltd.

EM Midco, established by Temasek, is acquiring Element Materials Technology Ltd. Temasek is a minority shareholder in Element Materials. As part of the rating action, Moody's withdrew the B3 CFR and B3-PD PDR and the stable outlook assigned to Element Materials. The B2 instrument ratings and stable outlook assigned to Greenrock Finance, Inc. and Greenrock Midco Ltd. remain unaffected and will be withdrawn upon repayment.

The proceeds of the new $1.8 billion first-lien debt issuance, together with $350 million of second-lien debt and the $4.8 billion equity contribution, including new pay-in-kind notes, will be used to fund the equity purchase, refinance debt and fund a larger acquisition of a North American business for a consideration of about $750 million.

The outlook is stable.

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