Moody's rates Oldcastle loans B1, Caa1

Moody’s Investors Service said it gave a B1 rating to the new senior secured first-lien credit facilities to be issued by Oscar AcquisitionCo, LLC (Oldcastle BuildingEnvelope). The facilities include a $1.285 billion term loan due 2029 and a $340 million revolver due 2027. The agency also assigned a Caa1 rating to other senior unsecured debt.

Moody’s assigned the company a B2 corporate family rating and a B2-PD probability of default rating.

"The B2 corporate family rating considers OBE's leading position as a supplier of architectural hardware & supplies, and a manufacturer of custom architectural glass products and aluminum systems in North America, its high profitability and positive free cash flow supported by moderate capital spending," said Motoki Yanase, a Moody’s vice president and senior credit officer, in a press release.

"These credit strengths are counterbalanced with new debt OBE has taken on, which elevates its leverage," added Yanase.

Proceeds of the first-lien term loan, other senior secured debt and other senior unsecured debt will be used by KPS Capital Partners to acquire OBE from the company's former parent, CRH plc and pay related fees and expenses. KPS will also invest in this transaction in the form of cash equity.

The outlook is stable.

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