S&P: Renaissance Acquisition loans B, notes B-

Standard & Poor's said it assigned its preliminary B corporate credit rating to Renaissance Acquisition Corp., which will merge with and into Gardner Denver Inc. when Kohlberg Kravis Roberts & Co. LP completes its acquisition of Gardner Denver.

The outlook is stable.

At the same time, the agency assigned a preliminary B issue rating to the company's proposed $2,725,000,000 senior secured credit facilities, which will comprise a $1.8 billion senior secured U.S. dollar tranche term loan, a $525 million equivalent senior secured euro tranche term loan and a $400 million revolver. A preliminary 3 recovery rating was assigned to the senior secured credit facilities

S&P also assigned a preliminary B- issue rating to the company's proposed $675 million senior unsecured notes and a preliminary 5 recovery rating to indicate the expectation that lenders would receive modest (10%-30%) recovery in the event of payment default.

"Our ratings on Wayne, Pa.-based GDI reflect the company's 'highly leveraged' financial risk profile and 'satisfactory' business risk profile," S&P credit analyst Svetlana Olsha said in a news release.

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