S&P: Janus unaffected on add-on

S&P said the issuer credit rating and existing debt ratings on Janus International Group LLC are not affected by its new $75 million incremental term loan debt issuance.

The proceeds from the new term loan will be used to fund an undisclosed acquisition, and repay temporary borrowings under the company's revolving credit facility that were used to finance two small previously closed acquisitions, S&P said.

The new loan will rank pari passu and have the same maturity date as the company's existing $470 million first-lien term loan due in 2025.

S&P said it assigned a B+ rating to the new $75 million term loan, the same as the existing first-lien term loan.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The recovery rating on the $100 million second-lien senior secured term loan remains at 6, indicating 0 to 10% expected default recovery.

Despite the incremental debt issuance, S&P said it expects adjusted EBITDA interest coverage to be broadly unchanged at just about 3x with a debt-to-EBITDA ratio initially increasing to roughly 6x before falling back to the 5x to 5.5x range over the next 12 months.

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