Moody’s gives B3 to Dayton Superior

Moody's Investors Service said it assigned a B3 corporate family rating to Dayton Superior Corp. following the company's announcement that it will issue a $225 million six-year second-lien term loan.

The outlook is stable.

The proposed term loan will be used to refinance Dayton Superior's existing term loan and pay related transaction fees. The proposed term loan will also be used to pay down the company's outstanding ABL revolver (not rated).

Moody’s said the B3 corporate family rating takes into account the company’s operating results, leverage levels and improving margins. The corporate family rating reflects the positive momentum expected in the non-residential construction sector during the next 12 to 18 months, as well as the company's business profile with broad product breadth.

The rating also takes into consideration Dayton Superior's limited free cash flow generating capacity and its impact on liquidity, and it considers the company's sluggish revenue growth and modest scale, the agency added.

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