Bulletin: Beacon Roofing Supply Inc.'s $200 Million Add-On Is Neutral for Credit Quality

This report does not constitute a rating action. ENGLEWOOD (S&P Global Ratings) March 11, 2024--S&P Global Ratings said today that Virginia-based roofing supply distributor Beacon Roofing Supply Inc. ?s (BB-/Stable/--) plan to use the proceeds from a $200 million add-on to its term loan B for general business purposes is neutral for credit quality. As such, the ratings on Beacon are unchanged. Our issue-level rating on the upsized $1.1 billion outstanding term loan due 2028 is ?BB?. The ?2? recovery rating indicates our expectation of meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a payment default. Our ?BB? issue-level rating and ?2? recovery rating on the company's $298 million 2026 senior notes and ?B? issue-level rating and ?6?

...March 11, 2024 This report does not constitute a rating action. ENGLEWOOD (S&P Global Ratings) March 11, 2024--S&P Global Ratings said today that Virginia- based roofing supply distributor Beacon Roofing Supply Inc.'s (##-/Stable/--) plan to use the proceeds from a $200 million add-on to its term loan B for general business purposes is neutral for credit quality. As such, the ratings on Beacon are unchanged. Our issue-level rating on the upsized $1.1 billion outstanding term loan due 2028 is `##'. The `2' recovery rating indicates our expectation of meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a payment default. Our `##' issue-level rating and `2' recovery rating on the company's $298 million 2026 senior notes and `B' issue-level rating and `6' recovery rating on its $347 million 2029 senior notes are both unchanged. For more information, see the full analysis, published May 8, 2023....

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