Moody’s assigns Kodiak loan B2

Moody’s Ratings said it assigned a B2 rating to Kodiak Building Partners' planned $350 million senior secured first-lien term loan.

Concurrently, the agency affirmed Kodiak’s B1 corporate family and probability of default ratings and B2 rating on its outstanding term loan.

Kodiak will use the proceeds to fund a $350 million dividend.

“Moody's views the proposed transaction as credit negative, increasing adjusted leverage by about a half turn. Moody's forecasts adjusted debt to EBITDA of 3.1x at year-end 2024 versus 2.6x on Sept. 30, 2023. The cash used for the return on capital could otherwise be deployed towards enhancing liquidity for potential acquisitions. Further, interest costs will increase by upwards of $30 million, which is material relative to the company's adjusted interest expense of around $60 million for the last 12 months ending Sept. 30, 2023,” 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.