S&P sets MEI Conlux loans at B

Standard & Poor's said it assigned its preliminary B corporate credit rating to MEI Conlux Holdings Inc.

The outlook is stable.

At the same time, S&P assigned its preliminary B issue rating to the company's $450 million proposed senior secured credit facilities, which comprise a $390 million senior secured first-lien term loan and a $60 million revolver. The recovery rating on the senior secured credit facilities is 3, which indicates the expectation of meaningful (50% to 70%) recovery in the event of a payment default.

MEI Inc. will be the borrower under the senior secured facilities.

"Our preliminary ratings on MEI reflect our view of the company's business risk profile as 'weak' and its financial risk profile as 'highly leveraged,'" S&P credit analyst Svetlana Olsha said in a news release.

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