S&P rates USNR, loans B

S&P said it gave B ratings to Vector WP Midco Inc. (USNR Wood Fiber) and its planned $100 million senior secured revolving credit facility, undrawn at close, and $315 million senior secured term loan.

Private equity firm One Equity Partners plans to buy USNR and Wood Fiber Group and merge them into Vector, which will do business as USNR Wood Fiber. One Equity will use the term loan to help it finance the deal.

“Our B issuer credit rating on USNR Wood Fiber reflects the smaller scale and scope of its operations and limited geographic diversity relative to its peers. The scope of USNR Wood Fiber's operations is limited given its focus on equipment and consumables for sawmills. With pro forma 2021 revenue of about $500 million, the combined company has a smaller scale than most capital goods companies we rate in the B category,” S&P said in a press release.

The outlook is stable.

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