S&P: DAE Aviation loan B-

Standard & Poor's said it assigned its B- issue rating to DAE Aviation Holdings Inc.'s proposed $520 million secured term loan due 2018. The agency assigned a 3 recovery rating to the loan, indicating an expectation of meaningful recovery in the event of payment default.

The agency said it also affirmed the CCC issue rating and 6 recovery rating on the company's unsecured notes. The 6 recovery rating indicates an expectation of negligible recovery.

According to S&P, the company also plans to enter into a new $150 million asset-based loan revolving credit facility due 2017 that will replace the existing $100 million revolver due 2013.

The company will use the proceeds from the new term loan to refinance the existing $470 million term loan due 2014, pay related fees and expenses, and provide additional cash liquidity.

If the refinancing is completed on terms substantially similar to those presented, S&P said it expects to affirm the corporate credit rating and revise the outlook to stable from negative.

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