Moody's rates RSI Home notes B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to RSI Home Products, Inc.

Moody's also assigned a B1 rating to the company's proposed $525 million second-lien senior secured notes.

Proceeds from the notes will enable management to buy out Onex Equity, which currently owns 50% of RSI, for about $320 million, and to pay off an existing $185 million term loan. The remaining balance will be used to increase the cash balance and to pay related fees and expenses.

The outlook is stable.

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