S&P assigns Hilite B, loans BB-, B-

Standard & Poor's said it assigned its B corporate credit rating to Hilite International Inc.

At the same time, S&P said it assigned its BB- bank loan rating, two notches above the corporate credit rating, and 1 recovery rating to Hilite's proposed $130 million of first-lien senior secured credit facilities, consisting of a $25 million revolving credit facility and a $105 million term loan.

The bank loan rating and recovery rating indicate the likelihood of full recovery in a default or bankruptcy, based on an assessment of the company's enterprise value, the agency said.

S&P said it also assigned its B- bank loan rating and 5 recovery rating to Hilite's proposed $60 million second-lien senior secured term loan.

The new credit facilities represent one part of Hilite's proposed capital restructuring, S&P said, adding that proceeds from the credit facilities will be used to refinance $145.2 million of existing debt and repurchase $39.5 million of third-party PIK preferred stock.

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