U.S.-based The Scotts Miracle-Gro Co.'s (Scotts') financial policy has become more aggressive, which we believe will result in debt to EBITDA sustained above 3x over our forecast period. The lawn and garden product company is issuing $300 million senior unsecured notes due 2023 and syndicating an upsized five year senior secured bank credit facility, which includes a $1.6 billion revolver and new $300 million term loan. We expect the company will use the proceeds to repay existing revolver borrowings, and will continue to add debt over the next two years for share repurchases and acquisitions. We do not forecast leverage reduction thereafter. We are lowering our corporate credit rating on the company to 'BB' from 'BB+' and lowering the rating
