Moody's lifts EaglePicher, rates loans B1

Moody's Investors Service said it assigned a B1 (LGD3, 36%) rating to EaglePicher Corp.'s first-lien guaranteed senior secured credit facility, which includes a $70 million revolving credit facility and a $150 million term loan facility. The agency also raised EaglePicher's corporate family and probability-of-default ratings to B2 from B3.

The outlook is stable.

Proceeds will be used to refinance the existing bank facilities put in place upon the company's exit from Chapter 11 in August 2006.

Moody's said the upgrades reflect the company's plan to repay the existing third-lien term facility, which will lower its debt and save interest expenses.

The ratings also reflect the company's moderate size and its weak credit metrics.

The issuer's leverage is 4.2 times pro forma for the asset sales and new bank credit facilities.

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