S&P lifts Kodiak, rates loan B+

S&P said it raised its ratings for Kodiak Building Partners Inc. and its outstanding $760 million term loan to B+ from B. The agency also assigned B+ issue-level and 3 recovery ratings ((50%-70%; rounded estimate: 55%) to Kodiak’s planned $350 million term loan.

“We expect leverage will remain 3x-4x over the next 12 months. This is inclusive of the $350 million debt issuance and our assumption of $200 million spent on acquisitions in 2024. For comparison, we expect leverage will be about 2x-2.5x for year-end 2023. Performance is supported by modest growth in the company's end markets, with its participation primarily in fast-growing states like Florida, Colorado, and Texas,” S&P said in a press release.

The company will use the loan to pay a $350 million dividend.

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.