S&P places Masonite on watch

S&P said it placed its Masonite International Corp. ratings, including the BB+ senior unsecured ratings, on CreditWatch with negative implications.

Masonite announced it agreed to buy PGT Innovations Inc. for about $3 billion.

“Based on the company's public disclosure, we anticipate that the acquisition will be funded primarily with debt and cash on hand, which we expect will contribute to a significant increase in Masonite's adjusted debt to EBITDA. On a pro forma basis, we estimate leverage at the end of 2024 to be 4.5x-5x and remain above our 3x downgrade threshold through 2025,” S&P said in a statement.

The deal is expected to close in mid-2024. The agency said that at that time it will probably downgrade Masonite and resolve the negative watch.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.