S&P rates Alabama Metal loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Alabama Metal Industries Corp. and assigned its B+ bank loan rating and 2 recovery rating to the company's proposed $130 million first-lien term loan due in 2012.

The outlook is stable.

Proceeds from the term loan and an unrated $30 million borrowing-based revolving credit facility will be used to pay a $103 million dividend to Alabama Metal's owners - equity sponsors Cravey, Green and Wahlen, co-investors and company management - and to repay the company's mezzanine debt, which is expected to be about $30 million at closing, S&P said.

The agency said the ratings reflect its small, mature and cyclical markets, modest sales base and volatile raw-material costs.

Partially offsetting these risks are its highly variable cost structure, customer and end-market diversity, strong market share in niche markets and relatively favorable market conditions, S&P added.

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