Moody’s rates GMS notes B2

Moody’s Investors Service said it gave a B2 rating to GYP Holdings III Corp.'s (operating as GMS Inc.) planned senior unsecured notes. The agency affirmed the Ba3 corporate family rating.

“The B2 rating assigned to GMS' senior unsecured notes due 2029, two notches below the corporate family rating results from their subordination to the company's secured debt,” the agency said in a press release.

Concurrently, Moody’s raised the senior secured term loan to Ba3 from B1 and speculative grade liquidity rating to SGL-1 from SGL-2.

“The upgrade of GMS' senior secured term loan to Ba3 from B1 results from Moody's expectation of higher recovery values for the term loan, since this debt is being reduced by slightly more than one-third. In addition, the term loan benefits now from the seniority it has relative to the unsecured notes. The change in GMS' speculative liquidity rating to SGL-1 from SGL-2 reflects Moody's expectation that GMS will generate consistent free cash flow in excess of $120 million in fiscal years 2022 and 2023 ending April 30.” 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.