Moody's rates Foundation Building loan B3

Moody's Investors Service said it assigned a B2 corporate family rating, B2-PD probability of default rating and SGL-3 speculative grade liquidity rating to Foundation Building Materials Holdings Co. LLC.

The agency also said it assigned a B3 rating to company's proposed $450 million senior secured term loan due in 2025.

The proceeds from the term loan and about $158 million in borrowings under company's proposed revolving credit facility will be used to redeem the $575 million 8¼% senior secured notes due 2021 and to pay debt premium and related fees and expenses, Moody's said.

The agency said it views the proposed transaction is credit positive as the company will have an extended maturity profile.

But Foundation will not begin to reap benefits of these lower cash interest payments until late 2019 because it needs to pay related fees and expenses, Moody's said.

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