Moody's rates Henry B2 and loans B2, Caa1

Moody's Investors Service said it assigned Henry Co., LLC B2 corporate family probability of default ratings, its proposed first-lien senior secured bank credit facility, which includes a $20 million revolving credit facility and $135 million term loan, a B2 (LGD3, 44%) rating and its proposed $40 million second-lien senior secured term loan a Caa1 (LGD5, 80%) rating.

The outlook is stable.

Proceeds from these credit facilities and cash on hand will be used to refinance existing debt, to finance a dividend to Henry shareholders and AEA Investors, LP, the majority owner of Henry, and to pay related fees and expenses.

Henry's B2 corporate family rating is constrained by its exposure to cyclical end markets including the repair and remodeling sector and new home construction, its small size and its exposure to volatile raw material costs, Moody's said.

The rating also considers the company's resilient performance during the economic and housing downturn, and its well-established brand names for roofing and sealant products, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.