Moody's assigns Associated Materials notes B3

Moody's Investors Service said it assigned a B3 rating to the prospective $250 million of senior secured notes issuance of Associated Materials, LLC. In addition, Moody's assigned a B3 corporate family rating and B3-PD probability of default rating to Associated Materials. The outlook is stable.

“Associated Materials' B3 corporate family and senior secured ratings reflect Moody's expectation that the company will experience margin contraction coupled with a decline in revenue in 2020, followed by a gradual recovery in 2021,” Moody’s said in a press release.

“The notes issuance is part of a larger recapitalization of Associated Materials, whereby most of the holders of the company's existing $675 million 9% senior secured notes will receive $25 million in cash plus equity in the company in exchange for their notes, Moody’s said.

The proceeds will be used to fund the cash portion of the exchange, pay down the balance on the company's ABL revolving facility, fund closing costs as well as for general corporate purposes.

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