S&P rates Walnut Sycamore loans BB+

S&P said it assigned a BB issuer credit rating to Walnut Sycamore Holdings LLC with a stable outlook and a BB+ issue rating to the company's proposed senior secured credit facility.

The credit facility consists of a $750 million five-year revolving credit facility (undrawn), a $1 billion five-year term loan A-1, a $750 million seven-year term loan A-2 and a $750 million seven-year term loan B. The recovery rating assigned to this facility is 2, indicating expectations for substantial recovery (80% rounded estimated) in the event of a payment default.

Cargill Inc. and Continental Grain Corp. (with minority partner Healthcare of Ontario Pension Plan) have formed a 50/50 joint venture to acquire Sanderson Farms Inc., merge it with Wayne Farms Inc. (currently majority owned by Continental Grain), and create the third-largest U.S. poultry producer in a transaction valued at about $7 billion, to be held by Walnut Sycamore Holdings.

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