S&P rates WireCo loan BB-

Standard & Poor's said it affirmed the B+ corporate credit rating on WireCo WorldGroup Inc.

The outlook is stable.

The agency also said it assigned a BB- rating to the company's proposed $460 million senior secured credit facility due 2017, consisting of a $135 million revolving credit facility and a $325 million term loan.

The recovery rating on the credit facility is 2, indicating 70% to 90% expected recovery in a default.

S&P also affirmed the B rating on the company's $425 million senior unsecured notes due 2017. The recovery rating remains a 5, indicating 10% to 30% expected recovery in a default.

The proceeds will be used from the credit facility to fund an acquisition as well as to repay a portion of debt outstanding, the agency said.

The affirmation reflects a view that WireCo's operating performance should improve over the next several quarters, which should lead to credit metrics that are in line with the rating despite higher debt, S&P said.

© 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.