Moody's eyes Foundation Building for cut

Moody's Investors Service said it placed Foundation Building Materials Holding Co. LLC's ratings on review for downgrade, including its B1 corporate family rating and the B2 rating on Foundation's senior secured term loan due 2025.

The review follows an announcement American Securities LLC affiliate will acquire all outstanding shares of Foundation for $19.25 per share in an all-cash transaction valued at approximately $1.37 billion, including outstanding debt. American Securities is a private equity firm.

"American Securities' acquisition of Foundation will likely lead to more debt being added to Foundation's balance sheet that may result weaker key credit metrics," according to Peter Doyle, a Moody's vice president and senior analyst, in a press release.

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