UBS launched syndication of a $210 million senior secured credit facility for AGY Holding Corp. last Tuesday. The deal funds the $268 million purchase of AGY by Kohlberg & Co. The acquisition is expected to close by March 31. The credit is made up of a five-year, $30 million revolver; a six-year, $135 million first-lien term loan and a seven-year, $45 million second-lien term loan. Pricing could not be determined.
Moody's Investors Service assigned a rating of B2 to the first-lien credit facilities and a Caa1 to the second lien. The ratings agency said the fact the company does not have a long performance history following its emergence from bankruptcy affected its ratings. AGY, a privately held company, emerged from Chapter 11 bankruptcy protection in April 2004. Also figuring into the ratings is the weak credit quality of AGY's main customers in the specialized glass products industry.
Based in Aiken, S.C., AGY manufactures advanced specialty glass products that are used in industries such aerospace, automotive and construction. A spokesman at AGY declined to comment and calls to UBS were not returned.