Moody’s: U.S. Farathane unchanged after add-on

Moody’s Investors Service said U.S. Farathane, LLC’s proposed $110 million add-on to the senior secured first-lien term loan due 2022 does not impact the company’s ratings, including its B2 corporate family rating, B2-PD probability of default rating, B2 senior secured first-lien term loan rating or its stable outlook.

The add-on will increase the company’s term loan to $489 million.

The terms in the credit agreement are expected to remain substantially unchanged, the agency added.

The proceeds from the add-on will be used to fund the $60 million purchase of Tepso Plastics Mex, Moody’s said. The acquisition fits within U.S. Farathane’s strategy, the agency said, and will provide further opportunities for growth.

The proceeds also will fund balance sheet cash for general corporate purposes, including potential further acquisitions, the agency said.

The ratings are unaffected given that its credit metrics do not change materially as a result of these transactions, Moody’s said.

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