S&P assigns Omnova loan B+

Standard & Poor's said it assigned its B+ senior secured debt rating to Omnova Solutions Inc.'s proposed $150 million senior secured term loan B due 2014.

The agency noted that Omnova will use proceeds from the term loan to refinance its existing $165 million senior secured notes due in 2010 and to pay about $19 million in accrued interest and a tender premium on the notes and $2 million in fees and expenses.

The term loan rating is the same as the corporate credit rating, with a recovery rating of 3, indicating the expectation for meaningful recovery of principal in the event of a payment default, S&P said.

At the same time, the agency said that it affirmed the B+ corporate credit rating on Omnova.

The outlook is stable.

According to S&P, the ratings reflect Omnova's business position as a niche provider of emulsion polymers, specialty chemicals and decorative products to mature and highly competitive markets.

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