S&P's Goodman Global ratings unaffected

Standard & Poor's said its ratings on Goodman Global Holdings Inc. (B+/negative) would not change as a result of the company's initial public offering filing.

The company will use proceeds of up to $460 million to redeem all of its preferred stock and repay certain debt obligations, with the actual amounts to be determined.

At Sept. 30, total debt, including capitalized operating leases, was $1 billion, resulting in a very aggressive debt to EBITDA of 6.5x. Despite Goodman's intention to use a portion of the IPO proceeds for debt reduction, S&P said it believes leverage over the near-term is likely to remain above the 4.5x that the agency expects for the current ratings.

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