Fitch applies BBB to RPM notes

Fitch Ratings said it assigned a BBB rating to RPM International, Inc.'s offering of senior unsecured notes.

The company expects to issue $350 million of notes maturing in 2027 and a $50 million tranche as an add-on to its existing 5.25% senior notes due 2045. The notes will rank equally in right of payment with the company's existing senior unsecured notes.

RPM intends to use the net proceeds to repay a portion of the outstanding borrowings under its revolving credit facility and for general corporate purposes.

The outlook is stable.

Fitch said the ratings reflect the company's well-balanced portfolio of products, geographic and end-market diversity, solid liquidity position, stable credit metrics and consistent free cash flow generation.

Risks include the cyclicality of the company's end markets, growth through acquisition strategy and enforcement claims filed by the Securities and Exchange Commission against RPM and its general counsel, the agency added.

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