S&P rates Foley Products, loan B

S&P said it gave B ratings to Foley Products Co. LLC and its planned first-lien term loan due 2029 Foley also plans to issue a $35 million revolving credit facility due 2027, undrawn at close.

“U.S.-based concrete precast products producer Foley Products Co.'s small scale, regional focus, and minority interest by a financial sponsor (about 37%) are only partly offset by its robust profitability, exposure to relatively stable infrastructure end markets, and continued strength from end market tailwinds,” the agency said in a press release.

The loans will be issued as part of Oaktree Capital’s investment in the firm. Foley Products will use about $95 million of the proceeds to purchase five facilities from Quikrete Holdings Inc. and Forterra Inc.

The outlook is stable, mirroring the view that despite increased debt, strong end-market tailwinds and sustained profitability will result in adjusted leverage of 4x-5x in 2022, S&P said.

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