S&P gives Sylvamo notes BB

S&P said it gave a BB issue-level rating to Sylvamo Corp.'s expected $500 million of senior unsecured notes due in 2029. The 4 recovery rating indicates an expectation for average (rounded estimate: 45%) recovery in default. The recovery rating on the unsecured debt considers the substantial amount of secured debt subordinating this security.

Last week, the agency assigned the company a BB issuer rating.

The company intends to use the proceeds together with borrowings under the senior secured credit facilities to make a special payment to International Paper Co. before the spinoff.

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