Moody’s rates Derby Buyer, loans B2

Moody's Investors Service said it assigned first-time ratings to Derby Buyer LLC (Derlin), including a B2 corporate family rating and a B2-PD probability of default rating.

The agency also assigned a B2 rating to the senior secured first-lien credit facility, including a $175 million senior secured first-lien revolver and a $700 million equivalent first-lien term loan facility, which will be split into dollar and euro tranches.

The outlook is stable.

The proceeds from the term loan, along with $1.2 billion cash and rollover equity, will be applied towards the purchase of Delrin by a private equity firm, TJC, LP, from DuPont de Nemours, Inc., and pay for transaction-related fees and expenses.

DuPont will retain a 19.9% equity interest in Delrin.

“Delrin's B2 CFR reflects the company's limited scale, high adjusted debt/EBITDA (leverage) and carve-out risk associated with its separation from DuPont,” the agency said in a news release.

“The rating reflects the company's niche focus on the Acetal Homopolymer (HPOM) segment – a highly engineered thermoplastic with large exposure to cyclical end markets such as automotive and industrial businesses, in addition to the company's exposure to medical and consumer markets.”

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