Taking stock: Tractor Supply hikes credit line

Also: Moody's cuts LP rating, Genesco suit going to trial Monday

Email | Print By Geert De Lombaerde

Brentwood-based Tractor Supply (Ticker: TSCO) has increased its senior credit line by $100 million to $350 million.

The company exercised its option to do so, saying that the participation of all nine lenders in its banking group indicates their confidence in Tractor Supply’s plans. Banc of America Securities arranged the revolving line.

In mid-morning trading, shares of Tractor Supply were down 2.7 percent. Year to date, they’re up about 11 percent.

Genesco merger mess update

The New York Times reports Genesco (Ticker: GCO) has added a claim of tortuous interference against UBS, accusing the bank of inducing Finish Line to bail on its deal to buy the Nashville-based retailer.

Separately, a suit by UBS against both Genesco and Finish Line goes to trial Monday. In that case, UBS is seeking to get out of the deal.

Around 11 a.m., Genesco was trading down about 2 percent.

Moody’s downgrades hurts LP

Following through on noises it made earlier this month, Moody’s Investors Service has downgraded the debt of Louisiana-Pacific, sending the already struggling shares (Ticker: LPX) down about 5 percent.

Among other things, the rating agency cites weaker credit protection measures, price competition for LP’s core oriented strand board product and the recent use of cash and investment holdings to offset negative cash flows. Moody’s analysts say OSB capacity is double the expected 2008 demand, which will depress prices well into 2009.

Shares of LP, which have trended down from $20 last summer, were changing hands at $11.25 this morning, down 5 percent on the day.