Moody’s assigns Lennox notes Baa3

Moody’s Investors Service said it assigned Baa3 ratings to Lennox International Inc.’s proposed $300 million of senior unsecured notes due 2025 and $300 million of senior unsecured notes due 2027. All other ratings of Lennox remain unchanged, the agency said.

The proceeds will be used to repay borrowings under the company’s $1 billion unsecured revolving credit facility due August 2021 and other floating-rate debt.

“The transaction is estimated to be debt neutral with adjusted debt to EBITDA remaining at about 2.8x. The transaction improves the company’s liquidity by increasing its revolver availability and extends Lennox’s debt maturity profile,” Moody’s said in a press release.

The stable outlook is also unchanged.

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