S&P puts CHI Overhead on positive watch

S&P said it placed its ratings on CHI Overhead Doors LLC, including the B senior secured ratings, on CreditWatch with positive implications.

The positive watch reflects the news Nucor is acquiring the company for $3 billion, including debt, the agency said.

“The CreditWatch positive indicates that the proposed transaction could potentially benefit C.H.I.'s credit quality since it is being acquired by a much larger and higher rated company. On a stand-alone basis, we expect C.H.I to continue operating with favorable credit measures on the back of strong sales price realization and stable demand from key end markets. As such, we expect its revenues to grow by about 20%-25% in 2022 and S&P Global Ratings-adjusted EBITDA margins to be 25%-27% over this period,” the agency said in a press release.

S&P said it sees CHI’s adjusted debt to EBITDA at the lower end or possibly even under the 4x-5x range in 2022.

“We plan to resolve the CreditWatch or discontinue our ratings on CHI once the acquisition closes, which we anticipate will occur before the end of second quarter of 2022,” S&P said.

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