S&P gives Lincoln Holdings B+

Standard & Poor's said it assigned its B+ corporate credit rating to Lincoln Holdings Enterprises Inc., the parent of operating subsidiary Lincoln Industrial Corp.

At the same time, S&P said it assigned its BB- bank loan rating and 2 recovery rating to subsidiaries LN Acquisition Corp.'s and Lincoln GmbH's proposed $325 million first-lien facilities, representing a substantial recovery given a default scenario.

In addition, S&P said it assigned its B bank loan rating and 5 recovery rating to the proposed $140 million second-lien term loan, representing negligible recovery given a default scenario.

The proceeds will be used to refinance existing debt, to fund a $150 million dividend to existing shareholders and to finance future acquisitions, S&P noted.

The outlook is stable.

According to the agency, the ratings on Lincoln reflect the company's highly leveraged financial risk profile, marked by high debt balances and aggressive financial policy, which more than offset its leading market positions in lubrication equipment and its good end-market and geographic diversity.

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