GMS Inc. 'BB-' Rating Affirmed, Off Watch Developing, Outlook Stable; Proposed Term Loan Rated 'BB-'

Tucker, Ga.-based wallboard and ceiling systems distributor GMS Inc. (GMS) is entering into a new $998 million term loan due 2025 to finance its proposed $627 million acquisition of Canadian building products distributor WSB Titan for $627 million. Proceeds will also be used to refinance GMS's existing term loan. The acquisition of WSB Titan will provide GMS with significant entry into the Canadian building products distribution space, increasing GMS' revenues by about 18% and EBITDA by about 30%, but also increasing debt leverage modestly to about 4.1x pro forma for the acquisition. We are affirming our 'BB-' corporate credit rating to GMS and removing all ratings from CreditWatch with developing implications. At the same time, we are assigning our 'BB-'

...+ Tucker, Ga.-based wallboard and ceiling systems distributor GMS Inc. (GMS) is entering into a new $998 million term loan due 2025 to finance its proposed $627 million acquisition of Canadian building products distributor WSB Titan for $627 million. Proceeds will also be used to refinance GMS's existing term loan. + The acquisition of WSB Titan will provide GMS with significant entry into the Canadian building products distribution space, increasing GMS' revenues by about 18% and EBITDA by about 30%, but also increasing debt leverage modestly to about 4.1x pro forma for the acquisition. + We are affirming our '##-' corporate credit rating to GMS and removing all ratings from CreditWatch with developing implications. + At the same time, we are assigning our '##-' issue-level rating and '3' recovery rating to GYP Holdings III Corp.'s proposed $998 million term loan. + The stable outlook reflects our expectation that over the next 12 months the company will continue to generate positive free...

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