S&P rates Roseburg facility BB+

Standard & Poor's said it assigned its BB- corporate credit rating to RLC Industries Co. (Roseburg), a forest products company with headquarters in Dillard, Ore., and assigned its BB+ bank loan rating and its recovery rating of 1 to Roseburg's $600 million senior secured bank credit facility.

The outlook is stable.

Proceeds of about $475 million from the new bank facility will be used to repay about $170 million outstanding under Roseburg's existing credit facility, about $280 million of private placement notes, plus fees and expenses.

S&P said the ratings reflect Roseburg's participation in the cyclical and oversupplied wood products industry, potentially softer housing markets over the intermediate term, significantly larger competitors, modest geographic diversity, and aggressive debt leverage.

These characteristics are partially offset by the company's valuable timberland holdings, good level of vertical integration, multiple distribution channels, and modern, large-scale facilities.

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