S&P rates SBP loans B, CCC+

Standard & Poor's said it assigned a B corporate credit rating to SBP Holdings LP.

The agency also said it assigned a B rating to the company's proposed $225 million first-lien term loan due 2021 with a recovery rating of 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating to the company's $127.5 million second-lien term loan due 2022, indicating 0 to 10% expected default recovery.

Subsidiaries SEI Holding I Corp. and Bishop Lifting Products Inc. will be co-issuers of the proposed loans.

The outlook is stable

SBP will use the proceeds from the offering to fund its acquisition of Delta Rigging & Tools and to refinance existing debt.

The stable outlook reflects an expectation that SBP will maintain stable profit margins, debt leverage between 4x and 5x and adequate liquidity as it continues to pursue acquisition driven growth, Paul Harvey, an S&P analyst, said in a press release.

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