Moody’s rates Atkore Ba2, notes Ba3

Moody's Investors Service assigned a Ba3 rating to Atkore Inc.'s proposed $400 million senior unsecured notes and assigned a Ba2 corporate family rating, Ba2-PD probably of default rating, a speculative grade liquidity rating of SGL-1 and a positive outlook to Atkore.

At the same time, Moody's affirmed the Ba1 rating on the senior secured term loan issued by Atkore International, Inc. and its positive outlook is unchanged.

Atkore plans to use the proceeds from the notes along with the proceeds from a new $400 million term loan B to pay off its existing term loan and to cover fees and expenses. The rating on the existing term loan will be withdrawn when it is paid off.

“Atkore's Ba2 corporate family rating is supported by its relatively low leverage, ample interest coverage, large market share in key products, attractive position in certain end markets, its enhanced focus on core product categories, pricing discipline and operational efficiencies, and its very good liquidity profile,” the agency said in a news release.

“The rating also reflects Atkore's moderate scale and limited diversity versus higher rated companies in the manufacturing sector and its reliance on non-residential construction activity, which drives demand for most of its electrical and tubular products.”

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