S&P rates Wilsonart loans BB-, notes B

Standard & Poor's said it assigned its preliminary B+ corporate credit rating to Wilsonart LLC. The outlook is stable.

At the same time, the agency said it assigned a preliminary BB- issue-level rating to the company's proposed $175 million revolving credit facility due 2017 and its proposed $425 million term loan due 2019. The preliminary recovery rating is 2, indicating an expectation of substantial recovery for lenders in the event of a payment default.

In addition, the agency said it assigned its preliminary B issue-level rating to the company's proposed $300 million senior notes due 2020. These notes are co-issued by Wilsonart Finance Ltd. The preliminary recovery rating is 5, indicating an expectation of modest recovery for noteholders in the event of a payment default.

Proceeds from these offerings will be used to fund Clayton, Dubilier & Rice's and Illinois Tool Works' acquisition of Wilsonart. Total consideration for the acquisition is $1.5 billion.

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