U.S.-based Momentive Specialty Chemicals Inc. (MSC) plans to extend the maturity of its revolving credit facility to 2014 from 2013. Its subsidiary Hexion U.S. Finance Corp. plans to issue $450 million of first-priority senior secured notes due April 15, 2020 to refinance term loans due in 2013. We are affirming all our ratings, including the 'B-' corporate credit rating, on MSC. We are assigning a 'B-' issue-level rating and a recovery rating of '3' to the proposed revolving credit facility and notes. The stable outlook reflects our expectation that despite challenging market conditions, if the refinancing is successful, liquidity should remain adequate during the next year at both MSC and Momentive Performance Materials Inc., which is owned by the same...
Companies mentioned in this report are:
- Hexion Inc.
- Hexion U.S. Finance Corp.
- Hexion Nova Scotia Finance ULC
- Momentive Performance Materials Inc.
Action: New Rating
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Product Type: Research Update
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