Bulletin: SiteOne Landscape Supply Inc. Ratings Are Unaffected By $100M Add-On To First-Lien Term And Maturity Date Extension

NEW YORK (S&P Global Ratings) Aug. 2, 2018--S&P Global Ratings said today that its ratings and outlook on Roswell, Ga.-based landscape supply distributor SiteOne Landscape Supply Inc. (BB-/Stable/--) are not affected by the company's issuance of a $100 million add-on to its first-lien term loan and the extension of the maturity date to October 2024 from April 2022. We expect the company to use the proceeds to repay a drawn portion of its existing $325 million asset-based lending (ABL) facility. Over the next 12 months, we still expect adjusted leverage of about 3.5x and funds from operations (FFO) to debt of about 20% given the partial repayment of the ABL. Moreover, despite the increase in term loan debt and modestly

...NEW YORK (S&P Global Ratings) Aug. 2, 2018--S&P Global Ratings said today that its ratings and outlook on Roswell, Ga.-based landscape supply distributor SiteOne Landscape Supply Inc. (##-/Stable/--) are not affected by the company's issuance of a $100 million add-on to its first-lien term loan and the extension of the maturity date to October 2024 from April 2022. We expect the company to use the proceeds to repay a drawn portion of its existing $325 million asset-based lending (ABL) facility. Over the next 12 months, we still expect adjusted leverage of about 3.5x and funds from operations (FFO) to debt of about 20% given the partial repayment of the ABL. Moreover, despite the increase in term loan debt and modestly higher interest expense (of about $1 million to $2 million annually), our expectations for adjusted EBITDA interest coverage of 5.0x-5.5x over the next 12 months remain unchanged. SiteOne continues to benefit from its acquisition strategy and robust growth in its primary end...

Bulletin