S&P cuts Ply Gem loan to B

Standard & Poor's said it lowered its issue-level rating on Ply Gem Industries Inc.'s senior secured term loan to B from B+ and revised its recovery rating to 3 from 2 as a result of the upsize of the principal amount to $430 million from $380 million.

With the larger loan size, the projected recovery drops below the 70% threshold for a 2 recovery rating. The 3 recovery rating on the term loan indicates an expectation for meaningful (50%-70%) recovery.

The B issue-level rating on the term loan is the same as the corporate credit rating on Ply Gem, in line with the agency's notching guidelines for a 3 recovery rating.

The CCC+ issue-level rating and 6 recovery rating on Ply Gem's proposed senior notes issuance, which the company intends to reduce to $500 million from $550 million, remain unchanged.

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