SiteOne Landscape Supply Inc. 'B+' Corporate Credit Rating Affirmed, Outlook Stable; 'BB-' Debt Rating Affirmed

U.S.-based landscape supply distributor SiteOne Landscape Supply Inc. is upsizing its existing $275 million first-lien term loan due 2022 (current amount outstanding of $273.6 million) to $300 million (pro forma amount outstanding of $298.6 million). At the same time, SiteOne's owners (private equity firm Clayton, Dubilier&Rice [CD&R] and John Deere) are planning a follow-on public equity offering to reduce their stake in the company to approximately 49% (and roughly 46% if the green shoe option is exercised) from about 69%. After assessing both of these transactions, we are affirming our 'B+' corporate credit rating on the company and our 'BB-' issue-level rating on the company's first-lien term loan. The recovery rating remains '2'. The outlook is stable, reflecting

...+ U.S.-based landscape supply distributor SiteOne Landscape Supply Inc. is upsizing its existing $275 million first-lien term loan due 2022 (current amount outstanding of $273.6 million) to $300 million (pro forma amount outstanding of $298.6 million). + At the same time, SiteOne's owners (private equity firm Clayton, Dubilier & Rice [CD&R] and John Deere) are planning a follow-on public equity offering to reduce their stake in the company to approximately 49% (and roughly 46% if the green shoe option is exercised) from about 69%. + After assessing both of these transactions, we are affirming our 'B+' corporate credit rating on the company and our '##-' issue-level rating on the company's first-lien term loan. The recovery rating remains '2'. + The outlook is stable, reflecting our view that SiteOne will maintain adjusted debt to EBITDA of about 4x and funds from operations (FFO) to debt between 15% and 20% over the next 12 months. NEW YORK (S&P Global Ratings) Nov. 23, 2016--S&P Global...

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