Moody's affirms Kerling

Moody's Investors Service said it affirmed the B3 corporate family rating of Kerling plc and assigned a provisional B3 (LGD4, 52.25%) to Kerling's proposed issuance of €75 million of senior secured loan notes, which will be used to fund the acquisition of the Tessenderlo Chemie Group's Chlor-alkali/PVC business.

The outlook is stable.

On June 14, Kerling announced plans to acquire the Chlor-alkali/PVC business, the agency said. Moody's expects the transaction to be funded by debt through the placement of €75 million in senior loan notes and additional drawing under the existing €120 million securitization facility.

Following the acquisition, Moody's said it expects Kerling's leverage to approach 5.3 times on a 2010 pro-forma basis.

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