AIP MC Holdings LLC 'B' Rating Affirmed; Outlook Stable; Proposed Term Loan Rated 'B'

Grinding media producer AIP MC Holdings LLC (doing business as Molycop) plans to issue $1.1 billion of secured debt, which it will use with cash on hand to retire its existing secured notes and pay a dividend to the financial sponsor. The transaction will add $280 million in incremental debt and raise adjusted leverage to about 6.0x from 4.8x. We estimate Molycop could reduce leverage below 6x over the next 12 to 24 months. We affirmed our 'B' rating on Molycop. We also assigned our 'B' issue-level rating with '3' recovery rating to Molycop's proposed $875 million first-lien term loan due 2028. The $225 million second-lien term loan due 2029 is not rated. The stable outlook reflects our expectation that

...- Grinding media producer AIP MC Holdings LLC (doing business as Molycop) plans to issue $1.1 billion of secured debt, which it will use with cash on hand to retire its existing secured notes and pay a dividend to the financial sponsor. - The transaction will add $280 million in incremental debt and raise adjusted leverage to about 6.0x from 4.8x. We estimate Molycop could reduce leverage below 6x over the next 12 to 24 months. - We affirmed our 'B' rating on Molycop. We also assigned our 'B' issue-level rating with '3' recovery rating to Molycop's proposed $875 million first-lien term loan due 2028. The $225 million second-lien term loan due 2029 is not rated. - The stable outlook reflects our expectation that pro forma for the debt refinancing, Molycop's adjusted leverage for fiscal year-end 2022 will be about 6x, driven by higher adjusted debt balance that is partially offset by stronger EBITDA growth. NEW YORK (S&P Global Ratings) Sept. 9, 2021-- S&P Global Ratings today took the rating...

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