Moody’s assigns Barrette loan B3

Moody’s Investors Service said it assigned a B3 rating to the prospective $405 million term loan B of LEB Holdings (USA), Inc. (Barrette Outdoor Living). Also, Moody’s assigned a B2 corporate family rating and a B2-PD probability of default rating to Barrette.

The proceeds will be used with $297 million of cash equity from sponsors, TorQuest Partners and Caisse de Depot et Placement du Quebec and $57 million of management and ownership rollover equity to acquire Barrette Outdoor Living for $759 million. The company is also entering into a $75 million asset-based revolving credit facility due 2025, which will be unrated.

“Barrette Outdoor Living’s B2 corporate family rating reflects favorable fundamentals that support investment in home improvement, including the desire to increase home values. We expect the overall building products sector to continue to benefit from a shift in consumers’ discretionary spending to home improvement over the next twelve months as many employees continue to regularly work from home as a result of the coronavirus pandemic,” Moody’s said in a press release.

The outlook is stable.

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