Fitch rates S.C. Johnson notes A-

Fitch Ratings said it assigned an A- rating to S.C. Johnson & Son Inc.'s $850 million 31-year senior unsecured notes.

Proceeds will be used for general corporate purposes, which may include funding organic growth, potential acquisitions, working capital, or increasing liquidity among others.

This is an opportunistic transaction that increases gross leverage to 2.7 times on a pro-forma basis at June 30. The company's intention is to use the funds in the business with full availability of the funds to reduce debt if required.

As a private company, Fitch's said its concern around the potential of a large debt funded shareholder friendly action is lessened. As a result, until the related proceeds are deployed in an accretive acquisition or to bolster liquidity, the agency will view S.C. Johnson’s leverage on net basis terms. Net leverage would thus be at very comfortable levels under 1 time on a pro-forma basis at June 30.

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