Moody's assigns Solis IV, facilities B1

Moody's Investors Service said it assigned ratings to Solis IV BV (Hunter Douglas), including a B1 corporate family rating and a B1-PD probability of default rating. Concurrently, Moody's gave B1 ratings to the company's planned first-lien credit facilities, consisting of a $750 million first-lien revolver due 2027, a $3.1 billion first-lien term loan due 2029, and a €1.35 billion euro-denominated first-lien term loan due 2029.

“Hunter Douglas' B1 CFR broadly reflects the company's leading market position and good brand recognition in the global window coverings industry, aided by a long operating history, ability to execute quick order turnaround times, and vertically integrated manufacturing process,” Moody’s said in a press release.

“The credit profile also reflects Hunter Douglas' narrow product focus with the vast majority of revenue related to residential window coverings products, and exposure to cyclical downturns given the discretionary nature of its products with demand largely driven by the cyclical housing market,” the agency said.

3G Capital will use the proceeds and new common equity to buy a 75% stake, repay debt, pre-fund about $500 million of near-term acquisitions, and pay related fees and expenses. The company expects $250 million of cash on balance sheet and that the $750 million first lien revolver will be undrawn at close of the transaction.

The outlook is stable.

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