S&P rates SESI notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating to SESI LLC's proposed $700 million senior unsecured notes due 2021. SESI is a wholly owned subsidiary of Superior Energy Services Inc. The agency said it also assigned a 3 recovery rating to this debt, indicating an expectation of a meaningful recovery in a payment default.

According to S&P, the company intends to use the net proceeds to repay Complete Production Services' 8% senior notes due 2016 in connection with its planned merger with Complete and to increase its credit facility to $600 million from $400 million.

S&P said it also revised the recovery rating on the company's existing $300 million 6 7/8% senior notes due 2014 and its $500 million 6 3/8% notes due 2019 to 3 from 4.

The agency said its ratings on Superior reflect its operational and geographic diversity, improving financial measures, and flexible capital expenditure budget, allowing it to operate largely within its cash flow.

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