Moody's rates United Industries loan

Moody's Investors Service said it assigned a B1 rating to the proposed $510 million amended and restated senior secured credit facilities of United Industries Corp. and affirmed the company's existing ratings.

The outlook was changed to stable from positive.

Moody's said the rating actions follow the company's announcement of its agreement to purchase the The Nu-Gro Corp. for about $144 million (or around 7.6x pro forma last-12-months EBITDA) and its intention to also undertake a partial recapitalization.

Moody's said the acquisition of Nu-Gro Corp., a Canadian manufacturer and marketer of packaged consumer and commercial lawn and garden products, is expected to broaden United Industries' geographic reach and provide access to the professional lawn and garden care market in North America. The partial recapitalization will result in the redemption of United Industries' existing 15% PIK Preferred Stock (unrated) and the remaining outstanding series B 9.875% senior subordinated notes.

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