Fitch gives Park River B

Fitch Ratings said it assigned Park River Holdings, Inc. a first-time issuer default rating of B and BB/RR1 rating to its senior secured asset-based leasing facility. Also, Fitch gave an expected B+/RR3 rating to Park River’s senior secured term loan and an expected CCC+/RR6 rating to its planned senior unsecured notes offering. The outlook is stable.

“Park River’s IDR reflects the elevated leverage level following the acquisition of PrimeSource Building Products, Inc. by Clearlake Capital Partners, L.P. and the subsequent combination of PrimeSource with TKE Holdings, Inc. (Dimora Brands). The IDR also reflects the company’s competitive position within the fragmented building products distribution market, its exposure to the cyclical residential construction end-market, and modest profitability and FCF metrics,” Fitch said in a press release.

The outlook reflects the expectation Park River will lower Fitch-calculated total debt to operating EBITDA to below 6.5x by the end of 2021 from a combination of EBITDA growth and debt reduction, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.