-S&P rates Nalco's USD750m term loans at BB+.
BANKING AND CREDIT NEWS-September 28, 2010--S&P rates Nalco's USD750m term loans at BB+(C)2010 M2 COMMUNICATIONS http://www.m2.com
28 September 2010 - S&P on Monday rated at BB+ US water treatment company Nalco's proposed USD750m (EUR558m) senior secured term loans.
The rated debt includes USD650m new term loan B-1 due 2017 and USD100m new term loan C-1 maturing in May 2016.
The new term loans landed a recovery rating of 1 on expectations of very high (90% to 100%) recovery in a payment default.
The company will use term loans proceeds along with cash on hand to refinance its existing term loan B due 2010 and term loan B due 2016.
All other ratings on Nalco, including the BB- corporate credit rating with a "positive" outlook, are unchanged.
The rating reflects the company's "strong" business risk profile and its "aggressive" financial risk profile. Its ratings benefit from its competitive position in water treatment and process chemicals and its solid operating margins along with balanced use of sizable cash flows to back its expansion, reward its shareholders and lower its debts.
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