S&P rates Oxbow Carbon facilities B, BB-

S&P said it affirmed the B+ corporate credit rating on Oxbow Carbon LLC and revised the outlook to positive from stable.

At the same time, the agency assigned a BB- issue-level rating to the company's proposed first-lien debt, which includes a $325 million revolving credit facility due 2022, a $100 million term loan A due 2022 and a $575 million first-lien term loan B due 2023.

The recovery rating is 2, indicating an expectation of substantial (70%-90%, rounded estimate: 75%) recovery for lenders in the event of a payment default.

S&P also assigned a B issue-level rating to the company's proposed $175 million second-lien term loan B due 2024. The recovery rating is 5, indicating an expectation of modest (10%-30%; rounded estimate: 25%) recovery.

The agency said it believes the proposed refinancing will improve Oxbow's financial flexibility.

The outlook revision reflects an expectation for Oxbow to achieve modest deleveraging over the next year, with debt to EBITDA close to 4x by the end of 2018, S&P said.

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