Moody’s upgraded its rating to Ba3 from B1 with a stable outlook and Standard & Poor’s revised its outlook to positive from stable following the company’s improved financial performance and credit metrics in 2006. In addition, the company amended its existing credit facility, reducing the borrowing rates on the related debt by 125 basis points, effective March 15, 2007. Since December 2006, Clayton has repaid $20 million of debt ahead of schedule.
“We are very pleased that the rating agencies have recognized our efforts to diversify our revenue stream and improve the financial condition of the company,” said Frank Filipps, Chairman and Chief Executive Officer of Clayton. “Based on our current level of debt outstanding, the repricing of our debt facilities will reduce our interest expense by approximately $750,000 annually.”
