S&P rates Apex Tool loan B, notes B-

Standard & Poor's said it assigned a B corporate credit rating to Apex Tool Group LLC, along with a B rating to its $175 million revolving credit facility due 2018 and its $835 million term loan due 2020.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a B- rating to the company's $450 million senior unsecured notes due 2021.

These notes are co-issued by Apex Tool Group Finance Inc. The recovery rating is 5, indicating 10% to 30% expected default recovery.

The proceeds from these offerings were used to fund Bain Capital's acquisition of Apex.

The outlook is stable.

The ratings reflects Apex's fair business risk profile and highly leveraged financial risk profile, S&P said.

The company has a highly competitive operating environment, is exposed to volatile raw material costs and relies on cyclical industrial and construction markets that drive demand for hand and power tools, the agency said.

These factors are somewhat offset by the company's strong market position in hand tools for use in both consumer and industrial applications, S&P said.

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