S&P rates Kemet notes B-

Standard & Poor’s said it assigned its B- issue-level rating and 4 recovery rating to Kemet Corp.’s recently announced $400 million senior secured notes due 2019.

The company will use proceeds from the new notes to redeem and pay the associated call premium on its $355 million outstanding 10½% senior notes due 2018, as well as to partially repay the borrowed amount on its $50 million asset-based lending revolving credit facility.

S&P said the ratings on Kemet reflect the company’s “weak” business risk profile and “highly leveraged” financial risk profile.

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