S&P cuts American Rock loan

Standard & Poor's said that it lowered the preliminary issue-level rating on American Rock Salt Co. LLC's $300 million term loan B to B+ from BB- and revised the preliminary recovery rating to 2 from 1. The 2 recovery rating indicates the expectation of substantial (70%-90%) recovery for lenders.

The lower issue rating reflects the upsizing of the proposed term loan to $300 million from $250 million.

The preliminary CCC+ issue-level rating on the proposed $175 million of second-lien notes due 2018 remains unchanged. The recovery rating remains 6, indicating negligible (0%-10%) recovery.

The company expects to use proceeds from the proposed term loan and notes to partially refinance existing debt and fund a distribution to shareholders.

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