S&P rates Southwire loan BB+

Standard & Poor's said it assigned a BB corporate credit rating to Southwire Co.

The agency also said it assigned a BB+ rating to Southwire's proposed $750 million senior secured term loan B, which may be co-issued by Coleman Cable Inc.

The recovery rating on the proposed notes is 2, indicating 70% to 90% expected default recovery.

The outlook is stable.

The proceeds from the proposed $750 million term loan, along with borrowings on its revolving credit facility, will be used to fund the purchase of Coleman Cable. It also will be used to refinance existing Southwire debt and Coleman Cable debt, S&P said, and for transaction-related fees and expenses.

The stable outlook reflects an expectation that Southwire's acquisition of Coleman Cable in conjunction with positive end-market demand will support EBITDA growth to more than $400 million in 2014, said Amanda Buckland, an S&P analyst.

"The rating anticipates that integration risks will be modest, mitigated by Coleman's limited overlap in customers and products," Buckland said in a press release.

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