S&P rates new Seminis notes B-

Standard & Poor's said it assigned its B- rating to fruit and vegetable seed manufacturer and distributor Seminis Vegetable Seeds Inc.'s proposed $140 million senior subordinated notes issue due in 2013 and affirmed its B+ corporate credit and BB- senior secured credit facility ratings.

S&P also assigned a recovery rating of 1 to the company's senior secured credit facility.

The outlook has been revised to negative from stable.

Proceeds from the proposed subordinated notes issue will be used to repay $100 million of the company's existing term loan B, with the rest added to cash for potential future acquisitions.

S&P said the revised outlook reflects Seminis' more aggressive financial policy and incremental increase in debt leverage to prefund future acquisitions. These factors are partially mitigated by Seminis' good market position in the global fruit and vegetable seed industry, its strong brand equity, and the high barriers to competitor entry into the industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.