Research Update: SiteOne Landscape Supply Inc. Outlook Revised To Positive On Improved Leverage; 'BB-' Rating Affirmed

In August 2020, SiteOne Landscape Supply Inc. completed an equity stock offering resulting in net proceeds of about $262 million. The company expects to use these proceeds for general corporate purposes including for small tuck-in acquisitions and/or debt reduction. Despite acquisition spending, S&P Global Ratings believes this equity offering will further reduce SiteOne's already improving adjusted leverage to the 2x-2.5x range while enhancing its financial flexibility. We are affirming our 'BB-' issuer credit rating and revising our outlook to positive from stable. We are also affirming our 'BB' ratings on SiteOne's first-lien term loan. The positive outlook reflects our belief that despite current recessionary pressures, SiteOne could be able to pursue its growth strategy while maintaining adjusted leverage in the

...September 4, 2020 - In August 2020, SiteOne Landscape Supply Inc. completed an equity stock offering resulting in net proceeds of about $262 million. - The company expects to use these proceeds for general corporate purposes including for small tuck-in acquisitions and/or debt reduction. - Despite acquisition spending, S&P Global Ratings believes this equity offering will further reduce SiteOne's already improving adjusted leverage to the 2x-2.5x range while enhancing its financial flexibility. - We are affirming our '##-' issuer credit rating and revising our outlook to positive from stable. - We are also affirming our '##' ratings on SiteOne's first-lien term loan. - The positive outlook reflects our belief that despite current recessionary pressures, SiteOne could be able to pursue its growth strategy while maintaining adjusted leverage in the 2x-3x range....

Research Update