S&P rates American Pacific notes B

Standard & Poor's said it assigned its B senior unsecured debt rating to American Pacific Corp.'s proposed $110 million senior notes due 2015.

The agency said American Pacific will use proceeds from the notes to refinance its existing debt, including the GenCorp Inc. seller note and borrowings under existing credit facilities and to pay a $6 million earn-out to GenCorp and $4 million in fees and expenses.

At the same time, S&P said it affirmed the B corporate credit rating and revised the outlook to positive from negative.

According to the agency, the outlook revision reflects American Pacific's improving operating performance, increased stability in the ammonium perchlorate business following the renegotiation of a contract with an important customer, Alliant Techsystems Inc. and the successful integration of the fine chemicals business.

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