Fitch assigns Atkore notes BB

Fitch Ratings assigned a rating of BB/RR4 to Atkore Inc.’s proposed issuance of $400 million of 10-year senior unsecured notes.

Fitch currently rates Atkore Inc. and Atkore International, Inc.’s long-term issuer default ratings BB, the planned $400 million secured term loan BB+/RR2 and $325 million ABL revolver BBB-/RR1.

The rating outlook is stable.

The ratings take into account Atkore’s leading market position in electrical raceway products in the U.S., moderate financial leverage and healthy cash flow generation.

These factors are offset by Atkore’s relatively narrow product line, the low technology and commoditized nature of its products, its significant exposure to the cyclical U.S. commercial construction market and commodity cost exposure.

Atkore intends to use the proceeds together with the proceeds of a planned $400 million seven-year term loan to refinance its existing $800 million term loan B that matures in December 2023.

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