S&P cuts Hanson Building loan to B

Standard & Poor's said it is revising its recovery rating on Stardust Holdings Inc.'s (Hanson Building Products) first-lien term loan to 3H from 2, with a projected recovery in the upper half of 50% to 70% range.

As a result, the agency lowered its issue-level rating on the first-lien term loan to B from B+, in line with its notching guidelines for a 3 recovery rating.

The rating on the company's second-lien term loan is unchanged.

S&P said it took this action because Hanson Building Products has reconfigured its proposed financing structure as it relates to Lone Star Funds' acquisition of Hanson.

The seven-year first-lien secured term loan will be now upsized to $635 million from $595 million and the eight-year second-lien senior secured term loan will be reduced to $260 million from $300 million.

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