White Cap Buyer LLC Assigned 'B' Issuer Credit Rating, Outlook Stable; New Debt Rated

Clayton, Dubilier&Rice (CD&R) is acquiring White Cap, a distributor of specialty concrete and construction products and services, from HD Supply Holdings Inc. for about $2.9 billion and will combine it with Construction Supply Group (CSG), a distributor of construction materials, accessories, and tools. CD&R and current shareholders of CSG, led by the Sterling Group, will own the combined entity, White Cap Buyer LLC. White Cap Buyer LLC is issuing debt to fund the transaction, which S&P Global Ratings expects will close in the fourth calendar quarter of 2020. The proposed debt financing will consist of a $750 million asset-based lending facility (ABL; unrated), $2,335 million first-lien term loan, and $640 million senior unsecured notes. We are assigning our

...September 28, 2020 - Clayton, Dubilier & Rice (CD&R) is acquiring White Cap, a distributor of specialty concrete and construction products and services, from HD Supply Holdings Inc. for about $2.9 billion and will combine it with Construction Supply Group (CSG), a distributor of construction materials, accessories, and tools. CD&R and current shareholders of CSG, led by the Sterling Group, will own the combined entity, White Cap Buyer LLC. - White Cap Buyer LLC is issuing debt to fund the transaction, which S&P Global Ratings expects will close in the fourth calendar quarter of 2020. - The proposed debt financing will consist of a $750 million asset-based lending facility (ABL; unrated), $2,335 million first-lien term loan, and $640 million senior unsecured notes. - We are assigning our 'B' issuer credit rating to White Cap Buyer LLC. - At the same time, we are assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed first-lien term loan due 2027. We are also...

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