S&P rates Thilmany loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Thilmany LLC. The outlook is stable.

In addition, S&P assigned its B+ bank loan rating and 3 recovery rating to the company's proposed $175 million senior secured credit facility.

Credit facility proceeds of $147 million and equity of $45 million will be used to purchase the industrial papers business of International Paper Co. (BBB/negative/A-3). Kohlberg & Co. LLC and International Paper will indirectly own Thilmany, 89% and 11%, respectively.

S&P said the ratings on Thilmany reflect the company's participation in the small and mature niche markets of the specialty paper industry, limited operating diversity, lackluster operating margins, thin free cash flow, modest liquidity and aggressive financial leverage.

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