S&P puts Ply Gem on negative watch

S&P said it placed all of the ratings on Ply Gem Industries Inc., including the B+ corporate credit rating, BB senior secured rating and B+ senior unsecured rating, on CreditWatch with negative implications.

The recovery rating on the senior secured debt is 1, indicating 90% to 100% expected default recovery.

The recovery rating on the senior unsecured debt is 4, indicating 30% to 50% expected default recovery.

S&P also said it placed the ratings on Atrium Windows and Doors Inc., including the B- corporate credit rating and senior secured ratings, on CreditWatch with positive implications.

The recovery rating on the senior secured debt is 4, indicating 30% to 50% expected default recovery.

Both CreditWatch listings follow news that CD&R funds will acquire all of the outstanding shares of Ply Gem common stock in a go-private transaction, as well as acquire Atrium Windows and Doors and combine the company with Ply Gem, S&P explained.

Ply Gem's board of directors unanimously approved the agreement, which provides for the payment of $21.64 per share in cash to all holders of Ply Gem common stock, the agency noted.

The cash purchase price represents a premium of about 20% over Ply Gem's closing stock price on Jan. 30, S&P said.

The watch will be resolved as the transaction closing approaches and financing arrangements become clear, the agency said.

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