S&P rates Hilite notes B

Standard & Poor's said it affirmed its BB- corporate credit rating on Hilite International Inc. and assigned its B debt rating to Hilite's proposed $150 million offering of senior subordinated notes due in 2012.

These actions follow Hilite's announcement of its plan to issue senior subordinated debt, repay certain debt, and refinance other senior secured credit facilities. The outlook is stable.

Hilite plans to issue $150 million of senior subordinated notes, using the proceeds to pay, in part, outstanding term loan balances totaling $168 million. A new unrated $85 million senior secured revolving credit facility will replace the existing $50 million revolver.

S&P said the ratings on privately held Hilite reflect the company's below-average business and financial profiles. Primary equity sponsors are Citicorp Venture Capital, Kelso & Co., and Blue Point Capital Partners Fund LP. These negative factors are mitigated by the highly engineered nature of Hilite's products, which have a long life cycle relative to products designed specifically for the vehicle interior or exterior.

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