Moody’s gives U.S. Lumber B2, loan B3

Moody's Investors Service said it assigned a B2 corporate family rating and B2-pd probability of default rating to Specialty Building Products Holdings LLC (doing business as U.S. Lumber), and assigned a B3 rating to the company's proposed senior secured term loan due in 2024.

The outlook is stable.

Proceeds from the new term loan and an equity contribution from affiliates of Madison Dearborn Partners and management will be used to purchase National Industrial Lumber Co. and repay borrowings under the old revolving credit facility.

Moody’s said the B2 corporate family rating reflects the company’s leveraged capital structure resulting from the buyout by affiliates of Madison Dearborn in April and the acquisition.

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