Moody’s eyes PGT for upgrade

Moody's Investors Service said it placed PGT Innovations, Inc.’ s ratings under review for upgrade, including the company's Ba3 corporate family rating, the Ba3-PD probability of default rating, and the B1 senior unsecured notes ratings. PGT's SGL-1 speculative grade liquidity rating remains unchanged. Previously, the outlook was stable.

On Monday, Masonite International Corp. announced its plans to buy PGT for about $3 billion in cash and stock. Masonite plans to fund the cash portion of the deal with cash, borrowings under its credit facilities and the proceeds from new debt and/or equity. The transaction is expected to close in the middle of 2024 and is subject to customary closing conditions including regulatory approvals.

“The review for upgrade reflects governance considerations related to the change in ownership that will occur given the pending acquisition by Masonite. It also reflects the stronger credit profile of Masonite with greater scale and that the outstanding rated PGT debt is expected to be repaid upon closing. Following the repayment of PGT's debt, Moody's will withdraw the existing PGT ratings,” the agency said in a press release.

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