Moody's assigns Arsenal B1, loan Ba3

Moody's Investors Service said it assigned B1 corporate family and B1-PD probability of default ratings to Arsenal AIC Parent LLC. The agency also gave a Ba3 rating to Arsenal's new seven-year senior secured term loan B (TLB). The outlook is stable.

Apollo Global Management, Inc. will use the term loan proceeds and the proceeds from other debt to partially fund its purchase of Arconic Corp. and to pay for the related transaction fees and expenses. The deal is subject to shareholder and regulatory approvals.

Once the transaction closes and Arconic's debt is repaid, Moody's said it will withdraw the ratings assigned to Arconic.

“The rating is supported by Arsenal's strong and leading market positions in the downstream aluminum industry with a broad operating footprint and diversified end market exposure that provides both market and geographic diversity. The rating also considers the company's long-standing customer relationships with many blue-chip customers, including Boeing, Airbus and Ford and that a substantial portion of revenues is generated from long-term agreements,” Moody’s said in a press release.

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