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Moody's assigns a B3 rating to senior secured tax exempt bonds guaranteed by Big River Steel

Steel News - Published on Wed, 15 May 2019

Image Source: Big River Steel
Moody's Investors Service assigned a B3 senior secured rating to the SD 487 million Arkansas Development Finance Authority tax-exempt bonds. The bonds will be repayable under a bond financing agreement between Big River Steel LLC, BRS Finance Corp. and BRS Intermediate Holdings LLC and the Arkansas Development Finance Authority. Big River's obligations under the bond financing agreement will be secured by the same collateral that secures the term loan and the secured notes. The proceeds of the bonds are being loaned to Big River Steel LLC and will be used to finance the expansion of the company's electric arc furnace steel mill located in Osceola, Arkansas which is expected to double mill capacity to 3.3 million tons and improve its ability to produce value-added steel products.

Moody's affirmed Big River's B3 corporate family rating, B3-PD probability of default rating, the B3 rating on its $395 million term loan B and the B3 rating on the $600 million senior secured notes. These ratings and the tax-exempt bond rating are commensurate with the corporate family rating since they share the same collateral package and will account for almost all of the debt in the company's capital structure. The ratings outlook remains stable.

Assignments:
..Issuer: ARKANSAS DEVELOPMENT FINANCE AUTHORITY
....Gtd. Senior Secured Tax-Exempt Revenue Bonds, Assigned B3 (LGD4)

Outlook Actions:
..Issuer: Big River Steel LLC
....Outlook, Remains Stable

Affirmations:
..Issuer: Big River Steel LLC
.... Probability of Default Rating, Affirmed B3-PD
.... Corporate Family Rating, Affirmed B3
....Gtd. Senior Secured Term Loan B2, Affirmed B3 (LGD4)
....Gtd. Senior Secured Global Notes, Affirmed B3 (LGD4)

Source :

Posted By : Rabi Wangkhem on Wed, 15 May 2019
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