S&P provides BB- to EnPro notes

S&P said it assigned its BB- issue-level rating and 4 recovery rating to EnPro Industries Inc.'s proposed $150 million senior unsecured notes due 2022.

The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery in a payment default scenario.

S&P expects EnPro to use the proceeds to repay its outstanding revolver borrowings, which should provide the company with increased availability to fund its future capital requirements, including potential contributions toward the settlement of previously disclosed asbestos claims and other general corporate purposes.

The recovery analysis does not include the impact of EnPro subsidiary Garlock Sealing Technologies' (GST) expected reconsolidation into the company.

All other ratings on EnPro are unchanged. S&P said it expects the company's leverage to improve to the 3 times to 4 times range (from about 5 times as of the end of 2016) after GST is reconsolidated later this year.

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