Moody’s trims Miter loans, rates loan B1

Moody’s Ratings said it downgraded the rating on MIWD Holdco II LLC's (Miter Brands)senior secured first-lien term loan to B1 from Ba3 and assigned B1 ratings to the planned $1.3 billion senior secured first-lien term loan B and the proposed $500 million of senior secured first-lien notes.

The outlook is negative. Previously, the ratings were on review for downgrade. This rating action concludes the review for downgrade started on Jan . 19.

The debt proceeds, cash from the balance sheet and a $979 million equity contribution from Miter's parent company will be used to fund the acquisition of PGT Innovations, Inc.

“The negative outlook reflects governance considerations, which include Moody's view that the PGT acquisition is transformative and leveraging with added operational and integration risk. PGT will represent about half of the combined company's revenue,” the agency said in a press release.

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