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Moody’s rates American Rock Salt loan B3
Moody's Investors Service said it assigned a B3 rating to American Rock Salt Co. LLC's proposed $410 million first-lien term loan due in 2025.
Proceeds plus cash on hand will be used to repay the existing term loan ($421.8 million outstanding) and extend the company's debt maturity profile.
The company will also use cash on hand to pay a discretionary $18 million dividend and a $10 million tax distribution.
A roughly $12 million reduction in term loan debt has a marginal impact on credit metrics, therefore the agency said American Rock Salt's B3 corporate family rating and B3-PD probability of default rating are unchanged.
The outlook is stable.
"While the proposed reduction in debt is marginally credit positive, it is not large enough to meaningfully alter the credit profile," Anastasija Johnson, Moody's vice president and lead analyst for American Rock Salt, said in a news release.
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