OREANDA-NEWS. S&P Global Ratings said today it assigned its 'BB+' issue-level rating to Herndon Va.-based wallboard producer, Continental Building Products Operating Co. LLC's (a subsidiary of Continental Building Products Inc.) proposed senior secured facilities. The recovery rating is '1', indicating our expectation of very high (90% to 100%) recovery in the event of default.

The company will use the new first-lien term loan B proceeds of $275 million to refinance the existing $272 million balance on its first-lien term loan B credit facility. The company will also obtain a new $75 million senior secured revolving credit facility that will replace the existing $50 million revolver. The borrower of the term loan is Continental Building Products Operating Co. LLC, and the borrowers of the revolver are Continental Building Products Operating Co. LLC and Continental Building Products Canada Inc.

The 'BB-' corporate credit rating and positive outlook on Continental Building Products are unchanged. For our complete analysis, please see our research update published on July 25, 2016 on RatingsDirect.