Moody's assigns B1 to Janus loan

Moody's Investors Service said it assigned a B1 rating to Janus International Group, LLC's planned senior secured seven-year term loan.

The loan and cash on hand will go towards paying off the company's senior secured term loan due 2025 and related fees and expenses in a leverage-neutral transaction. The B1 rating on the existing term loan will be withdrawn upon full redemption.

Janus' B1 corporate family rating and B1-PD probability of default rating are not affected. The company's speculative grade liquidity rating remains SGL-2, the agency said.

“Moody's views the proposed transaction as credit positive, due to improved liquidity. Janus is upsizing its revolving credit facility to $125 million from $80 million. The borrowing base formula due to seasonality may limit availability. Regardless, Moody's does not project the company utilizing its revolver except for minimum letter of credit commitments, since Janus will generate free cash flow in each quarter.

Further, Janus will now have an extended maturity profile. Upon refinancing the existing asset-based revolving credit facility due 2024, the new five-year asset-based revolving credit facility will mature in 2028 and be the nearest maturity,” the agency said in a statement.

The outlook is stable.

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