S&P gives LSB notes B-

S&P said it gave B- issue-level 4 recovery ratings to LSB Industries Inc.'s planned $500 million of senior secured notes. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 45%) recovery in default.

“This issuance follows the approval of the company's preferred stock exchange transaction by its shareholders and our subsequent upgrade,” the agency said in a press release.

LSB is expected to use the proceeds to redeem its $435 million of 9 5/8% senior secured notes due 2023, pay related transaction fees and expenses and for general corporate purposes.

The outlook is stable.

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