Moody's rates Albaugh facilities B1

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

The outlook is stable.

Concurrently, the agency assigned a B1 rating to Albaugh's proposed $400 million first-lien senior secured credit agreement, which consists of a $100 million revolving credit facility due 2019 and a $300 million term loan B facility due 2021.

Proceeds will be used to refinance existing debt and general corporate purposes.

"Albaugh's B1 CFR primarily reflects the company's narrow product portfolio of generic herbicides and the fact that glyphosate-based products continue to account for nearly half of its sales," Anthony Hill, a Moody's vice president, senior analyst and lead analyst for Albaugh, said in a news release. "The high sales concentration in glyphosate-based products potentially leaves the company susceptible to volatility in EBITDA and cash generation."

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