S&P rates GMS notes B

S&P said it rated GMS Inc.’s planned $300 million of senior unsecured notes due 2029 B with a 6 recovery rating. Subsidiary GYP Holdings III Corp. will issue the notes.

GMS will use the notes to repay its term loan.

S&P also upgraded the first-lien term loan to BB from BB- and revised the recovery rating on the debt to 2 from 3 because priority debt will comprise a smaller component of GMS' capital structure.

Finally, S&P affirmed GMS’ BB- rating but revised the outlook to stable from negative. “Our stable outlook on GMS Inc. indicates our view that strength from residential construction will offset the slow commercial construction demand. As such, over the next 12 months, we expect adjusted leverage to remain between 3x and 4x and operating cash flow (OCF) to debt to be 15%-25%,” the agency said in a press release.

© 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.