Moody's rates Janus loan B2

Moody's Investors Service said it affirmed Janus International Group, LLC's B2 corporate family rating and B2-PD probability of default rating following news that company is upsizing its term loan for acquisitions.

Moody's also said it assigned a B2 (LGD 3) rating to Janus's $75 million incremental senior secured term loan due 2025.

Terms and conditions will be similar to the company's existing $466.5 million senior secured term loan due 2025, the agency said.

Moody's said it anticipates pricing to be slightly higher for the incremental term loan relative to the current term loan.

The outlook is stable.

The proceeds from the $75 million term loan add-on will be used to acquire a national manufacturer of metal self-storage buildings, Moody's said, and reduce current revolver borrowings used for small "bolt-on" acquisitions.

The company is highly leveraged, but has solid EBITA margins, which are strong relative to other rated building products companies, Moody's said.

Janus also has a good liquidity profile characterized by free cash flow generation throughout the year, revolver availability and no near-term maturities beyond term loan amortization, the agency said.

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