S&P upgrades Orbital ATK unsecureds

Standard & Poor’s said it raised the rating on Orbital ATK Inc.’s $300 million unsecured notes due 2021 to BB from BB- and removed the rating from CreditWatch, where they were placed with positive implications in September.

The upgrades follow the company’s completed refinancing.

S&P also said it revised the recovery rating on the notes to 5 from 6 because the amount of secured debt ahead of the notes has been reduced. The 5 recovery rating indicates 10% to 30% expected default recovery.

Orbital used the proceeds from its new $800 million term loan and $400 million of unsecured notes due 2023, along with $82 million draw on its new $1 billion revolver, to fully repay and terminate its prior credit facilities, which included a $1.077 billion term loan A and $197 million term loan B, the agency said.

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