Moody's rates Carlisle notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Carlisle Cos. Inc.'s proposed $750 million senior unsecured notes due 2030. Carlisle's other ratings and positive outlook remain unchanged.

Proceeds will be used redeem all of the outstanding $250 million 5.125% senior notes due 2020 as well as for general corporate purposes, including the funding of recent and future acquisitions.

This transaction will result in Carlisle's adjusted debt to EBITDA increasing to 2.4x on a pro forma basis from 1.9x at Dec. 31. Moody's said it now expects projected leverage of 2.3x by year-end 2020, rather than the previously projected 1.6x.

“Despite the increased leverage, our outlook for Carlisle remains positive and reflects our expectation of deleveraging through earnings growth below 2x, albeit over a longer time horizon. The positive outlook also reflects Moody's expectation that Carlisle will continue to maintain strong cash flow generation and excellent liquidity. The additional leverage is somewhat mitigated by the improvement in the company's debt maturity profile,” the agency said in a press release.

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