Moody’s boosts BCPE, notes

Moody’s Investors Service said it boosted the ratings on BCPE Ulysses Intermediate, Inc.’s senior secured term loan to B2 from B3, senior unsecured notes due 2029 to Caa1 from Caa2 and the senior unsecured PIK toggle notes due 2027 to Caa1from Caa2. BCPE is a parent holding company of LBM Acquisition, LLC (US LBM).

Concurrently, Moody’s raised US LBM’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

“The upgrade of US LBM's CFR to B2 from B3 reflects US LBM's improved scale with revenue in excess of $10 billion, diversity of products and maintenance of low leverage. Moody's believes that these factors will enable US LBM to better withstand the inherent cyclicality in the homebuilding sector. Moody's forecasts EBITDA margins remaining in the range of 10%-13% over the next eighteen months, which is a key credit strength. Also, Moody's projects low leverage, with adjusted debt-to-EBITDA below 4.25x through 2024, and interest coverage, defined as adjusted EBITA-to-interest expense, above 3x over the same period. Cash flow allocated to reducing revolver borrowings, which were utilized for acquisitions, further supports the ratings upgrade,” the agency said in a press release.

The outlook remains stable.

© 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.