Fitch rates Hillman BB-

Fitch Ratings said it assigned a BB- expected long-term issuer default rating to Hillman Solutions Corp.

The agency also gave an expected rating of BB/RR2 to the group’s proposed $835 million senior secured term loan and $200 million senior secured delayed draw term loan.

Fitch’s ratings assume that the Hillman Cos., Inc. and the Hillman Group, Inc.’s debt structure will be entirely replaced, resulting in debt at closing of around $835 million, the agency said.

“Provided the transaction is completed as planned, Fitch expects leverage (debt/EBITDA) to decline to the mid-3x range in 2021 from the 6.8x expected at fiscal year-end 2020,” the agency said in a press release.

Hillman plans to use proceeds and a new credit facility to refinance its debt structure.

The outlook is stable.

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