S&P rates Weekley Homes notes B+

S&P said it assigned its B+ issue-level rating to Weekley Homes LLC's proposed $250 million senior unsecured notes due 2025. The recovery rating of 3 indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

S&P said it expects the company will use the proceeds to pay down outstanding balances on its revolving credit facility and, in conjunction, will reduce committed amounts on its credit facility to $435 million ($400 million secured and $35 million unsecured) from $735 million.

The new $250 million senior unsecured notes will rank pari passu with the company's existing $200 million senior unsecured notes due 2023, which have a recovery rating of 3 and an issue-level rating of B+.

The corporate credit rating on Weekley Homes is B+ with a negative outlook.

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