S&P: WII Components unaffected

Standard & Poor's said that the ratings on WII Components Inc. (B/stable) remain unchanged in connection with the recently announced plan for the company to be acquired by a new private equity owner.

The agency said it expects that the transaction, valued at $295.5 million, will be financed with additional debt and equity.

While pro forma total debt to last-12-month Sept. 30, 2006, EBITDA is likely to increase to the 5x-6x range from its current 3.3 times, it would remain in an acceptable range for the current ratings, the agency noted.

The acquisition is not expected to have any impact on WII's business position, which remains vulnerable, given the company's narrow product focus and reliance on the uncertain repair and remodeling segment of the residential construction market, S&P said.

© 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.