S&P rates MACH Gen loans B

Standard & Poor's said it assigned its B rating on MACH Gen LLC's first-lien credit facilities. The rating had been preliminary subject to final documentation.

The facilities consist of a $580 million senior secured first-lien term loan B due 2014, $100 million first-lien working-capital facility due 2014 and $60 million first-lien synthetic LOC facility due 2013. S&P also assigned its 1 recovery rating to the combined $740 million debt obligations.

The outlook is stable.

The ratings reflect weaknesses that include the company's high consolidated leverage, price volatility and poor operating performance, the agency said.

Strengths that partially offset weaknesses include a 100% excess cash sweep designed to repay debt during periods of strong cash flow, a $100 million liquidity facility and a six-month debt service reserve and no construction risk, S&P added.

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