S&P rates Ashton Woods notes B

S&P said it assigned B issue-level and 3 recovery ratings Ashton Woods USA LLC's planned $300 million of senior unsecured notes due in 2030. Ashton Woods Finance Co. will be an issuer of the notes. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in default.

The ratings are consistent with S&P’s other ratings on Ashton Woods’ senior unsecured notes.

The company intends to use a portion of the proceeds to fully redeem its 9 7/8% senior notes due in 2027, of which $255 million was outstanding as of Aug. 31.

“We consider the planned transaction neutral for credit quality,” S&P said in a press release.

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