S&P rates SPX FLOW notes BB

S&P said it assigned a BB rating and 4 recovery rating to SPX FLOW Inc.'s proposed $600 million senior unsecured note issuance, which is composed of one tranche of senior unsecured notes due 2024 and one tranche of senior unsecured notes due 2026.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The proceeds, together with borrowings under its domestic revolving credit facility, will be used to repurchase, or redeem and retire, its $600 million of outstanding senior notes due 2017, S&P said.

With revenue of about $2.4 billion in 2015, SPX FLOW manufactures flow components, process equipment and turn-key systems for the food and beverage, power and energy and industrial end markets, the agency said.

The ratings reflect the company’s fair business risk assessment and significant financial risk profile assessment, S&P said.

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