Moody’s rates MI Windows loan B2

Moody’s Investors Service said it assigned a B2 rating to MIWD Holdco II LLC’s (the parent of MI Windows and Doors, LLC) proposed $750 million first-lien senior secured term loan due 2027. MIWD is also putting in place a new $150 million ABL revolving credit facility expiring in 2025.

The proposed loan will replace the company’s $675 million facility due 2026, in conjunction with its acquisition of a vinyl replacement windows and patio doors manufacturer for the in-home dealer market.

Moody’s said it forecasts pro forma debt to LTM EBITDA would increase to 5.7x at Sept. 30, 2020, and EBITA to interest coverage would have been 2.2x for the 12 months then ended. These metrics include the preferred equity instrument held at the parent company of MIWD as debt. Excluding that adjustment, debt to LTM EBITDA and interest coverage would have been 3.7x and 4.1x, respectively, for the same period, the agency said.

Moody’s also affirmed the company’s B2 corporate family rating, B2-PD probability of default rating and B2 rating on the company’s $675 million term loan. The agency plans to withdraw that rating once the planned term loan is put in place. “The affirmation of the ratings reflects pro forma credit metrics that are only modestly different from the Sept. 30, 2020 levels and remain in line with our expectations,” the agency said in a press release.

The outlook is stable.

© 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.