S&P rates Unimin loan BB

S&P said it assigned a BB corporate credit rating to Unimin Corp.

The outlook is stable.

The agency also said it assigned a BB rating and 3 recovery rating to the company's new senior secured $1.65 billion seven-year term loan.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The rating reflects the company's positon as the market leader in sand-based proppant, notable diversification through its cyclical industrial minerals segment and some level of support from its parent SCR-Sibelco NV, S&P said.

The ratings also consider an expectation for solid market fundamentals in the frac sand industry, which will support EBITDA expansion and result in an expected adjusted debt leverage of about 3x in 2018 before settling in the 2x to 3x range, the agency said.

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