S&P rates NANA loan BB

Standard & Poor's said it assigned a preliminary BB rating to NANA Development Corp.'s recently revised proposed new $175 million first-lien senior secured term loan due 2016.

The preliminary corporate credit rating on NANA remains B+.

The preliminary recovery rating is 1 indicates expectation of 90% to 100% recovery.

S&P also assigned a preliminary B+ rating to the company's proposed $260 million second-lien senior secured term loan due 2017. The preliminary recovery rating is 4, indicating expectation of 30% to 50% recovery.

Proceeds will be used to refinance the company's credit facility and to acquire Grand Isle Shipyard Inc., an offshore oil and gas servicing maintenance provider.

The corporate credit rating reflects the company's aggressive financial risk profile and its weak business risk profile, marked by its reliance on government funding budgets, integration risks with the proposed acquisition of Grand Isle Shipyard Inc. and the potential for declining zinc prices, S&P said.

These factors are partially offset by some diversity of the company's business lines, its well-established relationships with long-term customers and its committed royalty income from Red Dog Mine, the agency said.

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