S&P rates Elementia notes BB+

Standard & Poor’s said it assigned a BB+ rating and 3 recovery rating to Elementia SA’s $425 million 5¾% senior unsecured notes due 2024.

The proceeds will be used to partly fund the acquisition of Lafarge’s cement operations in Mexico for about $180 million, refinance about $145 million of existing debt and $75 million for general corporate purposes, S&P said.

Elementia and its subsidiaries jointly, severally and unconditionally guarantee the notes, the agency said.

The rating is at the same level as the corporate credit rating, reflecting the recovery rating of 3, indicating 50% to 70% expected default recovery.

The ratings reflect Elementia’s fair business risk profile and significant financial risk profile, S&P said.

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