Moody’s reviews Morsco

Moody's Investors Service said it placed Morsco, Inc.’s B2 corporate family rating, B2-PD probability of default rating and the B3 rating on its $300 million first-lien term loan due 2023 under review for upgrade.

The review was prompted by the May announcement that Reece Ltd. (Ba1, stable), a supplier of plumbing and HVAC products in Australia, entered into a definitive agreement to acquire Morsco.

The transaction, valued at about $1.44 billion, will be funded with a combination of debt and equity.

Moody’s said the review reflects its view that Morsco’s credit profile will benefit from being part of a larger combined organization with established market position and a stronger credit profile. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in July 2018.

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