S&P assigns SEG Holding notes B+

S&P said it assigned a B+ rating with 2 recovery rating to SEG Holding LLC’s planned $325 million of senior secured notes. SEG, or Southeastern Grocers, is the parent of the operating entity and consolidated subsidiary BI-LO LLC. The agency assigned a B issuer rating to SEG.

Proceeds will be used to refinance its term loan. Once the loan is repaid, S&P said it will withdraw the rating on BI-LO.

The company also plans to reduce its asset-based loan facility to $450 million from $550 million because of the recent reduction in its store base. “In our view, the downsized facility remains sufficient to cover the company's liquidity needs,” S&P said in a press release.

The outlook is stable.

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